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Russell Laffitte Sentenced to 5 Years in Federal Prison in Murdaugh Fraud Case

A vacated prior conviction led the former Palmetto State Bank executive to plead guilty.

Overview

  • He received a 60‑month federal sentence, three years of supervised release, a $20,000 fine, and a $600 special assessment.
  • He pleaded guilty to conspiracy to commit wire fraud and bank fraud, wire fraud, bank fraud, and three counts of misapplication of bank funds.
  • Prosecutors said he diverted clients’ settlement money at Alex Murdaugh’s direction while serving as conservator and personal representative, including disbursing $1,325,000 from one client’s funds.
  • He paid $3,555,884.80 in restitution before sentencing and agreed to forfeit $85,845.73, with officials saying victims have been made financially whole.
  • His plea bars him from controlling any federally insured bank without permission, and a state sentencing hearing is expected on Oct. 13.