Banker for Alex Murdaugh faces prison time as state and federal cases wrap up

COLUMBIA, S.C. (AP) — The South Carolina banker who prosecutors said helped Alex Murdaugh move millions of dollars around to avoid detection of his thefts in exchange for a share of the money will spend at least five years in prison.

Russell Laffitte pleaded guilty Thursday to eight counts in state court. Laffitte’s plea was part of a complex deal with federal prosecutors that should wrap up his criminal case by the end of October and keep him in federal prison until around May 2027.

Laffitte is one of several people investigators said were ensnared by Murdaugh as he stole millions from his law firm and clients in wrongful death and serious injury cases.

Murdaugh is serving a life sentence for the killings of his wife and son in 2021. While admitting to the thefts, he adamantly denies the killings and is appealing his murder convictions.

The deal Laffitte made in state court requires him to serve eight years in prison with the sentence running at the same time as the five-year sentence in federal court.

Laffitte could get enough credits for good behavior and complete the requirements of his state sentence before he gets out of federal prison. The 54-year-old also is getting credit for time he has served under house arrest since May 2022.

Before the hearing, prosecutors said Laffitte sold bank stock to pay $3.5 million in restitution.

Laffitte did not speak beyond answering the judge’s questions Thursday. Prosecutors laid out the facts of his schemes. No victims spoke, but they will have time to address the judge at Laffitte’s state sentencing on Oct. 13.

Laffitte pleaded guilty to federal bank and wire fraud charges this spring after similar convictions in a jury trial were overturned by an appeals court last year. His sentencing in that case is expected Monday in Charleston.

After the original federal trial, Laffitte was sentenced to seven years in prison and began serving that sentence when his conviction was reversed.

Laffitte and Murdaugh were both from prominent families around tiny Hampton County. Laffitte’s family built Palmetto State Bank, which was so well regarded that the Independent Banks of South Carolina honored Laffitte as the banker of the year in 2019.

But that sterling reputation also helped Laffitte and Murdaugh steal, prosecutors said.

Laffitte became the court-appointed safekeeper of settlement money for some of Murdaugh’s most vulnerable clients, including children who lost their parents, investigators said.

Prosecutors said Laffitte collected as much as $450,000 in untaxable fees for moving the money. He also sent large checks from the settlement accounts to Murdaugh, who was juggling mounting debts he would later blame on an opioid addiction.

Laffitte’s 2022 conviction was overturned by a federal appeals court. They ruled the trial judge had interviewed a juror during deliberations without lawyers or Laffitte in the room. violating his constitutional right to an impartial jury.