Former Lowcountry banker Russell Lucius Laffitte has pleaded guilty and been sentenced on eight felony charges stemming from three South Carolina State Grand Jury indictments. The indictments also named former attorneys Richard Alexander Murdaugh and Cory Howerton Fleming.
Laffitte, 54, who was previously the Chief Executive Officer of Palmetto State Bank, appeared before Judge Heath Taylor in South Carolina General Sessions Court on September 25, 2025. His employment with the bank ended on January 7, 2022. As a bank official, Laffitte authorized large loans to Alex Murdaugh and served as conservator or personal representative in cases involving Murdaugh. These roles resulted in nearly half a million dollars in payments to Laffitte for his services and gave him control over client funds that were used for so-called “loans” to himself and Murdaugh.
“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 those against Murdaugh and Fleming. “Alex was so much in hock to Russell that Russell was in hock to Alex,” he added.
In one indictment (2022-GS-47-01), Laffitte admitted that he and Murdaugh misappropriated $350,245.08 held in trust for Natarsha Thomas at Palmetto State Bank. Thomas was a minor injured in a car accident, and Laffitte took five figures in fees while signing paperwork that allowed her funds to be stolen.
In another case (2022-GS-47-02), Laffitte acknowledged misappropriating $309,581.46 held for Hakeem L. Pinckney and his estate, partly to allow Murdaugh to repay loans issued by Laffitte from other client funds where he also acted as conservator.
A third indictment (2022-GS-47-03) involved $1,172,945.76 taken from funds controlled by Laffitte at Palmetto State Bank intended for the Badger family. Part of these funds were used by Murdaugh to pay back loans received from other client accounts managed by Laffitte.
Judge Taylor sentenced Laffitte on October 13, 2025, to a total of 13 years: eight years of active imprisonment running concurrently with his federal sentence and credit for time served; an additional five years state prison term will be suspended upon completion of five years’ probation and 350 hours of community service after the active component is served. Under the plea agreement, Laffitte paid $3,555,884.80 in restitution. Court-imposed bond conditions prevented him from spending or encumbering assets later used for restitution payments. He is also barred from future participation with the Federal Deposit Insurance Corporation under an Order of Prohibition required by the plea agreement.
The investigation was conducted by the State Grand Jury—a partnership between the South Carolina Attorney General’s Office’s State Grand Jury Division and the South Carolina Law Enforcement Division—with support from other agencies at various levels of government. Attorney General Alan Wilson thanked all partner agencies involved in bringing this case forward.
