Attorney General Alan Wilson announces Russell Laffitte sentenced on State Grand Jury felony charges of Breach of Trust, Computer Crime, and Criminal Conspiracy

(COLUMBIA, S.C.) - South Carolina Attorney General Alan Wilson announced today that former Lowcountry banker Russell Lucius Laffitte pleaded guilty and was sentenced on eight separate felony charges from three South Carolina State Grand Jury indictments, which also had indicted former attorneys Richard Alexander Murdaugh and Cory Howerton Fleming.

On September 25, 2025, Laffitte pleaded guilty to the following crimes before the Honorable Heath Taylor in South Carolina General Sessions Court:

1. Indictment 2022-GS-47-01, Count 4: Criminal Conspiracy (class F felony)
2. Indictment 2022-GS-47-01, Count 5: Breach of Trust, $10K or more (class E felony)
3. Indictment 2022-GS-47-01, Count 6: Breach of Trust, $10K or more (class E felony)
4. Indictment 2022-GS-47-02, Count 10: Criminal Conspiracy (class F felony)
5. Indictment 2022-GS-47-02, Count 11: Breach of Trust, $10K or more (class E felony)
6. Indictment 2022-GS-47-03, Count 1: Breach of Trust, $10K or more (class E felony)
7. Indictment 2022-GS-47-03, Count 15: Computer Crime, $10K or more (class F felony)
8. Indictment 2022-GS-47-03, Count 16: Criminal Conspiracy (class F felony)

Laffitte, 54, was the Chief Executive Officer of Palmetto State Bank until the bank terminated his employment on January 7, 2022. As a bank official, he was responsible for loaning millions of dollars to Alex Murdaugh, and Alex Murdaugh had Laffitte appointed as conservator or personal representative in Murdaugh’s cases, which ultimately gave Laffitte close to half a million dollars in payments for his supposed “services”.  It also gave Laffitte control over hundreds of thousands of dollars of money belonging to injured clients, which Laffitte also used to give himself and Murdaugh so-called “loans” – particularly when Murdaugh’s finances needed an injection of money to pay off other debts.

“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 this case as well as the Murdaugh and Fleming cases.  “Alex was so much in hock to Russell that Russell was in hock to Alex”, he added. 

In 2022-GS-47-01, Laffitte pleaded guilty and admitted that he and Murdaugh misappropriated for Murdaugh $350,245.08 in funds Laffitte held in trust as conservator for Natarsha Thomas at Palmetto State Bank. Laffitte was supposed to act in the best interest of Thomas, who was a minor when she was injured in a car wreck, but instead, he took five figures in conservator fees and did nothing for her but sign the paperwork that allowed her money to be stolen. 

In 2022-GS-47-02, Laffitte pleaded guilty and admitted that he and Murdaugh misappropriated for Murdaugh $309,581.46 in funds Laffitte held in trust as conservator for Hakeem L. Pinckney and his Estate at Palmetto State Bank, in order, in part, to allow Murdaugh to pay back loans Laffitte had given him from client funds in the Plyler case in which Laffitte also served as a conservator. Laffitte took five figures in conservator fees and did nothing for him but sign the paperwork that allowed his money to be stolen.

In 2022-GS-47-03, Laffitte pleaded guilty and admitted that he and Murdaugh misappropriated for Murdaugh $1,172,945.76 in funds Laffitte controlled at Palmetto State Bank for the benefit of the Badger family, in order, in part, to allow Murdaugh to pay back loans Laffitte had issued to him from client funds in the Plyler case, in which Laffitte served as a fiduciary. Laffitte took five figures in conservator fees and did nothing for them but sign the paperwork that allowed his money to be stolen.

Pursuant to the plea, Judge Heath Taylor sentenced Laffitte on October 13, 2025, to a total of 13 years, to include eight years of imprisonment of active time, to be run concurrently with his federal sentence and with credit given for time served. Laffitte was sentenced to a consecutive five years in state prison to be served once he finishes his active component, which will be suspended upon the service of five years’ state probation and 350 hours of community service. Pursuant to the plea, Laffitte also paid $3,555,884.80 in restitution. State Grand Jury bond conditions sought by the State and entered by the state judges prevented Laffitte from spending or encumbering his assets that were ultimately used to fund this restitution for the victims. Laffitte was also required in the plea agreement to enter into an Order of Prohibition from Further Participation with the Federal Deposit Insurance Corporation.   

This was a State Grand Jury investigation, which functions as a partnership between the South Carolina Attorney General’s Office’s State Grand Jury Division and the South Carolina Law Enforcement Division, as well as other state, local, and federal partners.  Attorney General Wilson thanked all of the partner agencies for their hard work in the case.