Brade
Former Palmetto State Bank CEO RUSSELL LAFFITTE has agreed to plead guilty to federal fraud charges tied to his involvement in the financial crimes of disgraced legal scion ALEX MURDAUGH. Court records obtained by WCIV reveal that LAFFITTE will serve five years in prison and pay $3,555,884.80 in criminal restitution. Additionally, he is barred from working at any federally insured bank or credit union without prior approval.
LAFFITTE, whose family founded Palmetto State Bank in 1907 in Hampton, South Carolina, allegedly used his position as CEO to facilitate MURDAUGH‘s schemes. He also served as the conservator or financial representative for MURDAUGH‘s personal injury clients. During his testimony, LAFFITTE claimed he was unaware of MURDAUGH‘s alleged fraud and merely followed his instructions.
In 2022, a jury convicted LAFFITTE of aiding MURDAUGH in stealing approximately $2 million from clients. He was initially sentenced to seven years in prison and ordered to pay $3.5 million in restitution. However, his sentence was overturned in November 2024 after an appellate court ruled that the removal of two jurors during his trial violated his Fifth Amendment rights.
LAFFITTE was fired from Palmetto State Bank following allegations that he assisted MURDAUGH and his college roommate, attorney CORY FLEMING, in stealing from a legal client, HAKEEM L. PINCKNEY, a deaf athlete who became a quadriplegic after a car accident. In January 2025, a judge ordered MURDAUGH and FLEMING to pay millions to an insurance company for conspiring to steal $4 million in insurance funds from the family of MURDAUGH‘s late housekeeper, GLORIA SATTERFIELD.
SATTERFIELD died after tripping and falling on the steps of the Murdaugh family’s hunting estate, Moselle, in South Carolina. The $4 million stolen from her family is part of the 100 financial crime charges against MURDAUGH, who has been accused of stealing millions from his former law firm clients.
MURDAUGH is currently serving a life sentence for the 2021 murders of his wife, MAGGIE MURDAUGH, and youngest son, PAUL MURDAUGH. A Colleton County jury found him guilty of shooting them near the dog kennels on their estate. Prosecutors argued that the murders were an attempt to divert attention from his escalating financial crimes, which were beginning to surface at the time.
MURDAUGH has also been sentenced to 40 years in federal court and 27 years in state court for his financial crimes.
Fox News Digital’s AUDREY CONKLIN and DANIELLE WALLACE contributed to this report.
**Sources:**
[WCIV](https://www.wciv.com)
[Fox News Digital](https://www.foxnews.com)
