Russell Laffitte Agrees to Plead Guilty in Federal Fraud Case, Seeks Shorter Prison Term
By James Seidel | CC News Network | Crime & Cask Investigations
CHARLESTON, S.C. — Former Palmetto State Bank CEO Russell Laffitte, long seen as a central accomplice in Alex Murdaugh’s financial crimes, has agreed to plead guilty to federal bank fraud charges, according to newly unsealed federal court records. The plea deal will spare Laffitte a second trial—one that was scheduled to begin on May 5, 2025, in Charleston federal court.
Laffitte, who was originally convicted in 2022 on six federal charges, including bank fraud, wire fraud, and misapplication of bank funds, served 13 months of a 7-year sentence before the Fourth Circuit Court of Appeals vacated the conviction in 2023 due to improper juror replacement.
Now, under this new agreement with federal prosecutors, Laffitte will be re-sentenced to 60 months (5 years) and receive credit for time served. He will formally enter the plea on Friday, April 18, before U.S. District Judge Richard Gergel.
Russell Laffitte and Murdaugh: A Fraud Partnership Unmasked
From 2011 to 2021, Laffitte and disbarred attorney Alex Murdaugh executed a sweeping financial scheme that stole millions of dollars from some of the most vulnerable victims in the Lowcountry, including widows, orphans, and accident survivors. Evidence from Laffitte’s first trial showed he used his position at the bank to set up accounts that allowed Murdaugh to siphon off settlement funds for personal use.
Laffitte was convicted of helping launder $3.7 million, mismanaging conservatorship funds, and extending himself low-interest loans from the very accounts meant to protect victims. In one particularly egregious example, $20,000 from an 8-year-old girl’s settlement was used to build a swimming pool.
Russell Laffitte: From Banker of the Year to Federal Convict
Laffitte’s fall from grace was swift and dramatic. Once hailed as the 2019 Banker of the Year by the Independent Banks of South Carolina, he now faces permanent infamy as one of the state’s most high-profile white-collar criminals. At his original sentencing, Judge Gergel called Laffitte’s actions part of “an elaborate criminal scheme” that preyed on people enduring profound personal tragedy.
“They were victims of horrible events—death, widowhood, trauma—and Mr. Laffitte treated them like chess pieces,” said Gergel in August 2023. “This is as sophisticated a crime as I’ve seen in my 13 years on the bench.”
Prosecutors revealed that Laffitte personally negotiated each check Murdaugh used to embezzle funds, and that he pocketed over $450,000 in personal representative and conservator fees without doing meaningful work—or paying taxes on the income.
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Russell Laffitte: The Legal Rewind and the Reduced Sentence
While the Fourth Circuit threw out the conviction on procedural grounds, the evidence was never in question. The retrial was expected to last two weeks, but now appears to be avoided through this deal.
Under the agreement:
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Laffitte will receive a 5-year sentence
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He’ll get credit for the 13 months already served
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The $3.5 million in restitution and $85,854 forfeiture from the original sentence will still apply
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Estimated Release Date
If he formally pleads and is re-sentenced on April 18, 2025, and begins serving immediately:
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Add 47 months from April 2025
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That brings us to March 2029 as a projected release date
️ Important Notes:
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In the federal prison system, inmates are typically eligible for up to 54 days per year of good conduct time, which could reduce his sentence by approximately 7–8 months.
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If Laffitte completes programs like RDAP (Residential Drug Abuse Program) or vocational rehab, he may earn additional time off or halfway house placement.
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With good time and early reentry placement, his actual release could happen in late 2028.
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Russell Laffitte: State Charges Still Pending
Even with the plea deal at the federal level, Laffitte’s legal troubles are far from over. He still faces state charges for similar financial crimes involving Murdaugh and may go to trial later this year in South Carolina state court.
South Carolina Attorney General Alan Wilson confirmed to the media that “ongoing conversations” are happening regarding Laffitte’s prosecution at the state level but declined to give a timeline.
Russell Laffitte- ⚖️ What Comes Next
Laffitte is expected to formally enter his guilty plea on April 18 in U.S. District Court in Charleston. His legal team includes Mark Moore, Shaun Kent, Michael Parente, and Cheryl Shoun. The case is being prosecuted by Assistant U.S. Attorneys Emily Limehouse, Winston Holliday, and Kathleen Stoughton.
Meanwhile, Alex Murdaugh, who was disbarred in 2022 and convicted of murdering his wife and son in 2023, is now serving two life sentences in state prison, plus federal prison time for financial crimes. His case for a new trial is with the South Carolina Supreme Court, awaiting the State to respond to his 132 page motion.
James Seidel is founder of CC News Network and host of Crime & Cask, covering white-collar crime and legal accountability across the Carolinas. For tips or court document submissions, email: jim@crimeandcask.com
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