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by JENN WOOD
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Disgraced former South Carolina banker Russell Laffitte — once a key financial enabler in the sprawling web of fraud tied to convicted murderer and disbarred attorney Alex Murdaugh — has been sentenced in South Carolina state court on eight felony charges stemming from multiple indictments.
South Carolina attorney general Alan Wilson announced the sentencing on Monday (October 13, 2025), marking another milestone in the accountability phase of the ‘Murdaugh Murders‘ crime and corruption saga. Laffitte, 54, the former CEO of Palmetto State Bank, pleaded guilty on September 25, 2025 to charges including breach of trust with fraudulent intent, criminal conspiracy and computer crime. These charges were tied to three separate indictments that also implicated Murdaugh and Cory Fleming.
In total, Laffitte admitted to siphoning more than $1.8 million from client trust accounts that he was legally bound to protect — money he and Murdaugh redirected to cover personal debts, prop up fraudulent loans, and maintain their financial schemes.
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SENTENCE AND VICTIM IMPACT
As part of a sweeping state plea agreement, Laffitte was sentenced to 13 years in prison for his role in the financial exploitation of vulnerable legal clients. This sentence — imposed by S.C. circuit court judge Heath Taylor — included eight years of active incarceration, to be served concurrently with his federal prison term – and an additional five-year state sentence, which will be suspended upon completion of five years’ probation and 350 hours of community service.
Laffitte has also paid $3.55 million in restitution — funds safeguarded under strict bond conditions that prevented him from dissipating assets while under indictment.
The charges against Laffitte stemmed from a series of calculated financial betrayals involving hundreds of thousands of dollars in misappropriated settlement funds. Laffitte, in his role as CEO of Palmetto State Bank and as court-appointed conservator, used his access to steal from clients who had placed their trust—and in many cases, their futures—in his hands.
Among the victims:
- Natarsha Thomas, a minor injured in a car accident, had $350,245 in settlement funds siphoned by Laffitte and Murdaugh. Laffitte collected hefty conservator fees but provided no real oversight—merely signing off on documents that enabled the theft.
- Hakeem Pinckney, a young man rendered deaf and paralyzed in a horrific crash, and later his estate, were defrauded of $309,581. These funds were redirected to cover previous loans Laffitte had already unlawfully extended to Murdaugh in the Plyler case, where Laffitte again acted as conservator.
- The Badger family, entitled to more than $1.17 million, saw their compensation rerouted to plug financial gaps created by Murdaugh’s spiraling debts — debts Laffitte repeatedly enabled through unauthorized “loans” from other clients’ funds.
In each case, Laffitte pocketed five-figure conservator fees, falsely claiming to act in the best interest of those he was legally and ethically bound to protect. Instead, he served as a critical conduit for Murdaugh’s long-running financial schemes — knowingly facilitating fraudulent transactions that fueled a multi-million dollar fraud network operating under the guise of legal representation and fiduciary duty.
“In essence, Laffitte was responsible for loaning so much money to Murdaugh that Murdaugh became too big to fail,” said senior assistant deputy attorney general Creighton Waters, who prosecuted the case. “Alex was so much in hock to Russell that Russell was in hock to Alex.”
With this sentence, Laffitte joins Murdaugh and Fleming among those criminally convicted in what has become one of the most extensive legal scandals in South Carolina history.
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RELATED | LAFFITTE SENTENCED TO FIVE YEARS IN FEDERAL PRISON
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THE BIGGER PICTURE
Laffitte’s state sentencing comes on the heels of his federal conviction and five-year prison sentence, handed down by U.S. district court judge Richard Gergel. That federal case, which originally resulted in a seven-year sentence, was vacated on appeal due to judicial error. Rather than go to trial a second time, Laffitte pleaded guilty again in April 2025 to six federal counts — including conspiracy, bank fraud, and misapplication of bank funds.
Federal prosecutors accused Laffitte of orchestrating at least 21 fraudulent transactions dating back to 2011, including a $750,000 loan falsely labeled for beach house renovations (but which was actually used to cover Murdaugh’s massive overdrafts). In total, he personally profited over $110,000 in conservator fees, failed to report income to the IRS, and facilitated over $1.3 million in misappropriated funds.
While Laffitte once claimed he was a mere pawn in Murdaugh’s schemes, his guilty pleas in both federal and state court paint a different picture — that of a willing participant who used his position of trust and authority to further a years-long fraud.
With both state and federal sentences now in place, Laffitte becomes another major figure formally held accountable in the wide-ranging criminal fallout from the collapse of Murdaugh’s once-sprawling empire.
His cooperation with prosecutors — including financial disclosures and restitution — may yet play a role in future prosecutions, as investigators continue to probe the network of enablers who helped Murdaugh manipulate the legal and financial systems of South Carolina’s Lowcountry.
Wilson thanked the S.C. State Law Enforcement Division (SLED) and other law enforcement partners for their continued work in exposing and prosecuting financial misconduct stemming from the Murdaugh saga.
“This sentence sends a clear message,” Wilson said. “Those who abuse positions of trust and authority — especially when vulnerable victims are involved — will be held accountable to the fullest extent of the law.”
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ABOUT THE AUTHOR …
As a private investigator turned journalist, Jenn Wood brings a unique skill set to FITSNews as its research director. Known for her meticulous sourcing and victim-centered approach, she helps shape the newsroom’s most complex investigative stories while producing the FITSFiles and Cheer Incorporated podcasts. Jenn lives in South Carolina with her family, where her work continues to spotlight truth, accountability, and justice.
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