Banker tied to Murdaugh case pleads guilty in South Carolina; federal case nearing resolution

COLUMBIA, S.C. — Russell Laffitte, a South Carolina banker tied to the Alex Murdaugh case, pleaded guilty Thursday to eight counts in state court as part of a deal with federal prosecutors that should wrap up his criminal case by the end of October and keep him in federal prison until about May 2027. The agreement calls for eight years in state prison to be served concurrently with a five-year federal sentence, with credits for time already served under house arrest since May 2022. Prosecutors said the arrangement could allow him to complete his state term while serving the federal sentence, depending on how credits are applied.

Prosecutors said Laffitte acted as the court-appointed safekeeper of settlement funds for some of Murdaugh’s most vulnerable clients, including children who lost parents, and moved millions of dollars to hide misappropriations from his law firm and clients. He collected as much as $450,000 in untaxable fees for moving the money, and investigators said large checks from the settlement accounts were sent to Murdaugh, who was juggling mounting debts he would later blame on an opioid addiction. Laffitte’s plea agreement notes he has already sold bank stock to pay roughly $3.5 million in restitution. He did not speak during the hearing, answering only the judge’s questions. The facts of the scheme were laid out by prosecutors, detailing how funds were funneled through the accounts to obscure disclosure and detection.

Laffitte and Murdaugh came from Hampton County’s prominent families, and Palmetto State Bank, built by Laffitte’s family, was long held in high regard. In 2019, Laffitte was named Banker of the Year by the Independent Banks of South Carolina. Prosecutors said that standing helped facilitate the scheme, enabling Laffitte to position himself as a trusted custodian of settlement funds and to move money with the appearance of legitimacy. The money was used to benefit Murdaugh, who faced debts tied to personal spending and legal bills, all while presenting a veneer of respectability that prosecutors say allowed the scheme to go undetected longer than it might have otherwise.

Murdaugh remains in prison after a life sentence for the killings of his wife and son in 2021. He has consistently denied involvement in those killings and is appealing his murder convictions. The financial crimes described in the state and federal cases are separate but intertwined in the broader pattern prosecutors describe: a family-backed network that leveraged professional trust and local influence to conceal losses and debt while the individuals involved publicly maintained a clean, law-abiding image.

On the federal side, Laffitte pleaded guilty to bank and wire fraud charges this spring after a jury conviction was overturned last year by a federal appeals court, which found the trial judge had interviewed a juror during deliberations without defense counsel present. Federal sentencing in that case had been scheduled in Charleston, and prosecutors indicated the overall effort should wrap up by late October with a potential federal release around May 2027, subject to time credits and the pace of the separate state proceeding.

Taken together, the cases illustrate how a trusted local financier and a prominent legal figure became entwined in a scheme that spanned millions of dollars, efforts to conceal misappropriations, and the management of settlements for vulnerable clients. Laffitte’s status as a longtime community figure, combined with Murdaugh’s high-profile status in a small county, helped shape the narrative around the investigations and added to the attention the cases drew across the state and the nation. Victims and their families were expected to have an opportunity to address the court at Laffitte’s Oct. 13 sentencing in state court, where restitution arrangements had already been addressed through the stock sale.

Legal observers noted that the timing of the parallel state and federal cases is unusual but not unprecedented, as prosecutors seek to maximize accountability and coordinate sentences across jurisdictions. If the schedules hold, Laffitte could serve his state-imposed term concurrently with the federal sentence, moving toward possible release around mid- to late-2027 depending on credit calculations and compliance with court requirements. The Murdaugh saga, one of the most closely watched criminal cases in recent memory in South Carolina, continues to unfold as court records become clearer about how the money moved and why.