CHARLESTON, S.C. — On the same day that Alex Murdaugh appeared before a judge in Colleton County on murder charges, a friend and business associate was indicted on federal charges.
A federal grand jury returned a five-count indictment against Russell Laffitte, the former director of Palmetto State Bank, alleging he and "the bank customer... a personal injury attorney at law in Hampton, South Carolina" engaged in a scheme to defraud the attorney's clients under false and fraudulent pretenses.
Although not named outright, authorities say the personal injury lawyer referred to in the indictment is Murdaugh, who is facing murder charges in the death of his wife and son as well as multiple charges related to financial crime.
Thursday's indictments against Laffitte include charges of conspiracy, wire fraud, bank fraud, and misapplication of bank funds.
They follow indictments handed down against Laffitte in May 2022. At that time, the former banker was charged with 21 counts covering alleged fraud, conspiracy, and computer crimes related to his association and dealings with Murdaugh.
The Thursday indictment says Laffitte extended $335,000 in personal loans to himself and $990,000 in personal loans to Murdaugh from funds belonging to Murdaugh's clients. The money loaned to Murdaugh was allegedly used to cover "hundreds of thousands of dollars in overdraft" on his personal account and Laffitte allegedly knew Murdaugh used money stolen from some of his other clients to pay back the loans. During this time, Laffitte allegedly collected $391,781.07 in fees for serving as conservator and personal representative.
Also, the indictment alleges, Laffitte willfully misapplied bank funds as an officer of Palmetto State Bank on two occasions:
- On October 28, 2021, Laffitte paid Murdaugh's law firm $680,000 without notice or consent from Palmetto State Bank
- On July 15, 2021, Laffitte "willfully misapplied" $750,000 through an unsecured loan to Murdaugh so that the lawyer could cover an overdraft in his personal account
If convicted, Laffitte faces a maximum of 30 years in prison on Thursday's charges.
The case was investigated by the FBI, the South Carolina Law Enforcement Division (SLED), and the South Carolina Attorney General’s Office. Assistant U.S. Attorney Emily Limehouse is prosecuting this case.
