Alleged Murdaugh accomplice Russell Laffitte gets new trial date

May 5 has been set as the date for the start of the second federal bank fraud trial for Russell Laffitte, former attorney Alex Murdaugh’s alleged partner in a multi-year fraud scheme.

The new trial is expected to last two weeks — “through at least May 16” — and will be presided over by U.S. Judge Richand Gergel, the judge at the first trial, according to court records. It will likely be held in federal court in Charleston.

Spokesmen for both the Laffitte and prosecution teams declined comment on Friday.

Laffitte, the former CEO of Palmetto State Bank in Hampton, was released from prison in November after the 4th Circuit Court of Appeals overturned his conviction and a 7-year prison sentence. He is under a $500,000 appearance bond, court records say.

The unanimous ruling by a 4th Circuit three-judge panel found no fault with the evidence or the prosecution’s case, but said that Gergel’s decision to remove one juror and replace her with an alternate during jury deliberations violated Laffitte’s Sixth Amendment right to an impartial jury.

Gergel also violated Laffitte’s Fifth Amendment right to be present at a critical stage of the trial when Gergel questioned the juror he excused in a closed proceeding away from Laffitte and his lawyers, the ruling said.

Laffitte was found guilty by a Charleston federal jury in November 2022 on six counts of conspiracy, bank and wire fraud and misapplication of bank funds.

Basically, prosecutors accused Laffitte of using his bank to launder millions of dollars that Murdaugh, a lawyer at the time, stole from his law firm and from his clients who were receiving major settlements in legal cases. The two worked in concert after Murdaugh brought Laffitte checks from settlements, according to the prosecution’s case.

During an August 2023 sentencing hearing, Gergel dwelt on Laffitte’s alleged thefts over eight years, calling them “systematic” and “methodical” and “abusive.”

Gergel also described Laffitte’s actions as among “the state’s most notorious financial crimes,” noting that they targeted “broken” people, among them a deaf man who was placed on a ventilator following a car crash and two sisters, 12 and 8, who had just lost their mother in a car wreck. Laffitte had served as a conservator, or steward, of their funds, which were won by Murdaugh in settlements for their injuries.

In his defense, Laffitte took the witness stand for five hours during the trial and acknowledged that while he had committed errors of judgment in his dealings with Murdaugh, he denied he had any criminal intent.

Portraying himself as a simple country banker who trusted folks and who unwittingly allowed himself to be used by Murdaugh, Laffitte told the jury he did not realize he had become part of a criminal scheme. He also said that Murdaugh, his family and the Murdaugh law firm had been loyal bank customers for years.

Murdaugh was a childhood friend, and their families had known each other for years, Laffitte testified. “His father is my godfather, and my father is his godfather,” Laffitte said of Murdaugh.

Laffitte testified he knew Murdaugh was in financial trouble but believed the problem could be managed. “But he was very low risk because of his job and his ability to earn money. He had been banking with us since the late 80s, so we had a lot of history, which gave us a lot of comfort...,” Laffitte testified.

Laffitte’s trial put disgraced ex-attorney and Murdaugh in the spotlight. Although Murdaugh was not present in the courtroom, his name was mentioned numerous times as a co-conspirator in the case.

In summing up the case to the jury, lead prosecutor Emily Limehouse told that jury that Laffitte’s knowledge of the bank and ability to move money around was an essential part in Murdaugh’s schemes.

Russell Laffitte was the banker, the organizer, the one who kept the trains running,” Limehouse told the jury. “Alex Murdaugh was the rainmaker, the one who brought the money in. He (Laffitte) violated the trust of the bank and its customers. That’s why he’s standing trial today.”

After the trial, Gergel sentenced Laffitte to seven years in prison. Murdaugh had used Laffitte’s bank for years to hide and manipulate money he was stealing from clients, according to the prosecution’s case. Laffitte had helped him, according to the prosecution.

Since Laffitte’s trial, Murdaugh has pleaded guilty in state and federal court to numerous counts of stealing at least $10 million from his law firm, clients and even his own brother. Murdaugh was also found guilty in March 2023 of murder in the shooting deaths of his wife, Maggie, and son Paul. He is serving two life sentences in state prison for the murders.