
Russell Laffitte
Russell Laffitte’s Federal Convictions Overturned, Faces New Legal Challenges in State Court
RICHMOND, VA / ORANGEBURG, S.C. – Former Palmetto State Bank CEO Russell Laffitte’s legal troubles have taken a dramatic turn. The U.S. Fourth Circuit Court of Appeals recently vacated his federal convictions and seven-year sentence for bank fraud, wire fraud, and conspiracy, ordering a new trial due to procedural errors during his original November 2022 trial. Meanwhile, Laffitte is also facing numerous state charges related to his alleged role in Alex Murdaugh’s sprawling web of financial crimes and corruption.
Federal Case: Procedural Missteps Lead to Overturned Conviction
The appellate court’s decision to overturn Laffitte’s federal convictions highlighted significant violations of his constitutional rights:
- Juror Mismanagement: U.S. District Judge Richard M. Gergel replaced two jurors during deliberations, citing one juror’s anxiety and another’s feeling of pressure to change their vote. This reshuffling led to a reconstituted jury delivering a guilty verdict within an hour—a move the appeals court deemed a violation of Laffitte’s Sixth Amendment right to an impartial jury.
- Fifth Amendment Violation: Laffitte was absent during key jury removal discussions, further undermining the fairness of the trial.
The Fourth Circuit’s ruling underscores the importance of impartiality and adherence to legal standards, especially in high-profile cases like Laffitte’s. Federal prosecutors, led by Emily Limehouse, have already announced their intent to retry him, citing the strength of evidence presented during the initial trial.
What’s Next for Laffitte in Federal Court?
The retrial process introduces a host of complexities:
- Decision to Retry: The current federal prosecutors have stated their desire to retry the case again in federal court. However, the potential appointment of a new U.S. Attorney under President-elect Donald Trump’s administration could influence this decision. Expect a new U.S. Attorney for South Carolina by July, 2025 or sooner. The feds have said they can be ready to take Laffitte to trial as early as March 2025, and will oppose any continuance. This is likely due to the impending resignation or firing of the current U.S. Attorney after president-elect Trump takes office in January 2025.
- New Pretrial Proceedings: Laffitte’s defense will likely challenge evidence and jury procedures, while the prosecution must ensure no repeat of previous procedural errors.
- Potential Plea Agreement: Both sides may consider resolving the case through a plea deal, avoiding the uncertainty of another trial.
- Further Appeals: Any new rulings could be subject to additional appeals, prolonging the legal battle.
State Charges Still Loom Over Laffitte
While the federal case plays out, Laffitte faces 21 state charges involving schemes to defraud victims of more than $1.8 million. According to FITSNews, South Carolina Attorney General Alan Wilson’s office, has scheduled a status conference for December 9, 2024, at the Orangeburg County Courthouse. Judge Heath Taylor, who now oversees all Murdaugh-related cases following Judge Clifton Newman’s retirement, will preside.
Lead state prosecutor Creighton Waters is expected to outline a possible timeline for Laffitte’s state trial during this hearing. The charges stem from Laffitte’s alleged role in helping Murdaugh siphon millions of dollars from legal clients, friends, and family members.

Broader Implications for South Carolina’s Legal System
The appellate court’s ruling and ongoing legal challenges surrounding Laffitte highlight broader concerns about the administration of justice in South Carolina:
- Transparency Concerns: The South Carolina Supreme Court’s decision to keep sealed records related to the removal of Juror 785 (Myra Crosby) from Alex Murdaugh’s murder trial has fueled skepticism about the judicial process. Crosby, who has since published a book alleging jury tampering, maintains that her dismissal was unfair and intended to secure a guilty verdict against Murdaugh.
- Judicial Accountability: Judge Richard Gergel’s handling of the Russell Laffitte federal trial has drawn scrutiny, with some observers questioning whether procedural errors reflect deeper issues within the court system.
Conclusion
As Russell Laffitte prepares to navigate both federal and state courtrooms, his case serves as a stark reminder of the importance of procedural fairness in high-profile trials. For South Carolina’s legal institutions, ensuring transparency and public trust will be critical in addressing the lingering questions surrounding these proceedings.
Stay tuned to CC News Network for updates on this evolving story.
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