Former Palmetto State Bank CEO RUSSELL LAFFITTE has pleaded guilty to multiple federal fraud charges tied to disgraced attorney ALEX MURDAUGH‘s financial crimes. According to court records obtained by WCIV, LAFFITTE will serve five years in prison and repay $3,555,884.80 in criminal restitution. Additionally, he is barred from working at any federally insured bank or credit union without prior approval. Sources: [WCIV](https://abcnews4.com).
LAFFITTE, whose family-founded bank has operated in Hampton, South Carolina, since 1907, served as conservator for MURDAUGH‘s personal injury clients and allegedly exploited his position to facilitate the schemes. During his 2022 trial, LAFFITTE claimed he was unaware of MURDAUGH‘s illegal activities, asserting he merely followed the attorney’s instructions. However, a jury convicted him of aiding MURDAUGH in stealing approximately $2 million from clients. Sources: [WCIV](https://abcnews4.com).
Initially sentenced to seven years in prison and ordered to pay $3.5 million in restitution, LAFFITTE‘s sentence was overturned in November 2024 due to juror mishandling that violated his Fifth Amendment rights. Following his conviction, LAFFITTE was terminated from Palmetto State Bank after allegations surfaced that he assisted MURDAUGH and his associate, CORY FLEMING, in defrauding a deaf quadriplegic athlete, HAKEEM L. PINCKNEY, and his family.
MURDAUGH‘s criminal saga includes stealing $4 million from the family of his late housekeeper, GLORIA SATTERFIELD, who died after a fall at the Murdaughs’ Moselle estate. In January 2025, a judge ordered MURDAUGH and FLEMING to repay the stolen insurance funds. Sources: [WCIV](https://abcnews4.com).
MURDAUGH is serving a life sentence for the 2021 murders of his wife, MAGGIE MURDAUGH, and son, PAUL MURDAUGH, in addition to consecutive 40-year and 27-year federal and state prison terms for financial crimes. Prosecutors argue the murders were an attempt to divert attention from his mounting legal and financial troubles. Sources: [WCIV](https://abcnews4.com).
Contributors to this report include Fox News Digital’s AUDREY CONKLIN and DANIELLE WALLACE.