Alex Murdaugh's money man pays the price after admitting role in million-dollar crime scheme

14 Oct 2025 By foxnews

A former banker and accomplice of Alex Murdaugh has learned his fate after pleading guilty to eight felony charges stemming from financial crimes committed alongside the convicted murderer.

A South Carolina judge sentenced Russell Laffitte, the former CEO of Palmetto State Bank, to 13 years in state prison on Monday, according to FOX 57.

The sentence comes after prosecutors said Laffitte exploited his roles as a court-appointed conservator for Murdaugh's personal injury clients and chief of Palmetto State Bank to funnel over $2 million in fraudulent transfers from clients to Murdaugh and himself, the outlet reported. Laffitte would then label the transfers as "loans," while also cashing in on tens of thousands in conservator fees from his victims without providing basic fiduciary services.

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Monday's sentencing marks the end of a years-long legal battle between Laffitte and his victims, after Laffitte was reportedly the first to face federal charges as investigators looked to take down the Murdaugh empire.

Last month, Laffitte was handed a federal five-year sentence after pleading guilty to charges of conspiracy, bank fraud, wire fraud and misapplying bank funds relating to his business dealings with Murdaugh, according to the U.S. Attorney's Office for the District of South Carolina.

During his federal trial, Laffitte testified that he simply did what Murdaugh asked of him and was unaware of the disgraced lawyer's financial schemes.

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A federal jury convicted Laffitte of six charges in November 2022, including wire and bank fraud, FOX 57 reported. His conviction was overturned in 2024 after an appeals court determined a juror had been improperly dismissed during deliberations. In April 2025, Laffitte reached a plea deal with federal prosecutors and agreed to pay $3,555,884.80 in restitution to his victims.

Eight years of Laffitte's state sentence will be served concurrently with the federal sentence, with the remaining five years set to be suspended if the disgraced banker completes five years of probation and 350 hours of community service, according to FOX 57.

The case stems from three separate grand jury indictments in which Laffitte was accused of conspiracy, computer crimes and breach of trust involving three separate victims. The case also implicated convicted accomplice Cory Fleming.

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Prosecutors reportedly revealed Laffitte's misappropriation of funds allowed Murdaugh to pay off fraudulent loans and personal debts, further cementing that his assistance was pivotal in allowing Murdaugh to keep his financial crimes in motion over the course of several years.

"Based on the hard work of so many since he was first indicted by the South Carolina State Grand Jury in April of 2022, Russell Laffitte had to stand in both state and federal court and admit the frauds he committed that enabled Alex Murdaugh," prosecutor Creighton Waters said in a statement to Fox News Digital, adding, "Whether lawyer or banker, if you use your privilege and responsibility in South Carolina to breach the trust of those you were supposed to protect, you will end up an eight-time convicted felon like Russell Laffitte."

Murdaugh is currently serving life in prison for the 2021 shotgun murders of his wife and son on the family's sprawling Lowcountry estate.