Laffitte pleads guilty to federal charges

Despite a high-court-ordered new trial, former Hampton banker and accused Alex Murdaugh fraud accomplice Russell Laffitte has opted to plead guilty to federal charges before standing trial on the first of his state criminal charges later this year.

On April 11, Laffitte, the former CEO of Palmetto State Bank in Hampton and a member of a South Carolina Lowcountry legacy banking family, signed a plea agreement admitting guilt in six counts of federal criminal charges in United States District Court, District of South Carolina's Beaufort Division.

In exchange for his plea to bank fraud, wire fraud, conspiracy to commit wire fraud and bank fraud, and three counts of misapplication of bank funds, and complying with several other provisions, Laffitte would be sentenced to 60 months (five years) in federal prison, followed by a period of supervised release, as well as fines, fees and restitution.

Laffitte was indicted in both state and federal courts in 2022 in connection with a financial crime spree orchestrated by disbarred attorney and convicted fraudster and murderer Richard "Alex" Murdaugh.

While awaiting trial on state charges, Laffitte was convicted in November 2022 on several federal charges and sentenced to seven years in federal prison.

However, in 2024, a federal appeals court vacated the conviction and sentence based on violations of Laffitte's Fifth and Sixth Amendment rights when a juror was ruled to have been improperly dismissed.

Laffitte's second federal trial was scheduled to begin May 5 but will no longer be needed.

Laffitte is now set to stand trial on the first of his state criminal indictments sometime in Allendale County in October of this year.

What are the details of Laffitte's plea agreement?

By pleading guilty, Laffitte potentially shaved off two years from his federal sentence, but the maximum sentence allowed by law on each charge was 30 years.

In exchange for his guilty plea, Laffitte also agreed to forfeit a certain amount of property, to be identified and determined by the federal government, $3,555,884.80 in criminal restitution, a monetary judgment of $85,854.73, and other fines, fees, and court costs.

The restitution and judgment must be paid on or before sentencing.

Per the agreement, if Laffitte violates any term of this plea agreement, federal prosecutors can seek the maximum punishment allowed by law.

Laffitte and one of his attorneys signed Laffitte's plea agreement, Mark C. Moore, on April 11 and by Emily Limehouse, Assistant United States Attorney, on April 14, when it was filed in the federal court's online public index.

The agreement awaits final approval by a federal judge, likely Richard Gergel, who oversaw the original conviction.

Assistant United States Attorneys Katie Stoughton and Winston Holiday also prosecuted the case.