Former banker Russell Laffitte hit with federal indictments for conspiracy, wire fraud, bank fraud
A former Hampton County banker previously indicted on state grand jury charges in connection with disbarred South Carolina attorney Richard "Alex" Murdaugh has now been struck with federal indictments.
On Wednesday, the United States Attorney's Office in Charleston announced that a federal grand jury returned a five-count indictment charging Russell Lucius Laffitte with conspiracy to commit wire fraud and bank fraud, bank fraud, wire fraud, and misapplication of bank funds.
The indictment alleges that Laffitte conspired with Murdaugh, then a partner at a Hampton law firm, PMPED, to commit wire fraud and bank fraud while employed as CEO of Palmetto State Bank of Hampton. According to the charge, Laffitte and Murdaugh engaged in a scheme to defraud Murdaugh's personal injury clients and his law firm from funds held at Palmetto State Bank.
Specifically, the indictment alleges that Laffitte, while serving as conservator for two of Murdaugh's clients, extended $355,000 in personal loans to himself and $990,000 in personal loans to Murdaugh from client funds held at the Hampton bank, and much of these funds were used to cover overdrafts on Murdaugh's personal account.
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The indictment also alleges that, at Murdaugh's direction, Laffitte transferred the clients' disbursed settlement funds into bank money orders, cash, and other wire transfers while collecting $391,781.07 in fees for serving as conservator and personal representative for those clients.
Also, according to the indictment, on two occasions, Laffitte misapplied bank funds: on Oct. 28, 2021, Laffitte paid the law firm $680,000 without notice to or consent from PSB, knowing that he had fraudulently transferred the money to the bank customer. Finally, the indictment alleges that on July 15, 2021, Laffitte misapplied $750,000 of bank funds by extending an unsecured commercial loan to Murdaugh.
If convicted, Laffitte faces a maximum term of imprisonment of 30 years on all federal charges, in addition to similar fraud and conspiracy charges levied against him by the state grand jury earlier this year.
The case was investigated by the Federal Bureau of Investigation, the South Carolina Law Enforcement Division and South Carolina Attorney General’s Office. Assistant U.S. Attorney Emily Limehouse is prosecuting this case.
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Laffitte was terminated from his position at PSB in January of 2022. His family founded the bank more than a hundred years ago.
On Wednesday, attorneys with Bland Richter LLP issued a news release stating that they now represent two of the clients allegedly defrauded by Laffitte and Murdaugh in the federal indictment, Alania Spohn and Hannah Plyler, who are sisters.
According to the release, on July 16, 2005, the sisters lost their mother and brother and suffered significant personal injuries in a tragic rollover automobile accident while they were underaged children. The children then placed their trust in Murdaugh, Laffitte and their institutions to "guide them in connection with the subsequent lawsuit, settlement and preservation of their settlement funds through the remainder of their childhood into adulthood," stated the release.
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"As the years ensued, the girls viewed Russ Laffitte as a father figure and trusted him to navigate the waters ahead for them and to guide them. It is difficult to express the emotions and disappointment of learning years later that those who had sworn to protect the Plylers chose instead to prey upon them. Russ Laffitte and Alex Murdaugh plundered their conservator accounts and treated it like their own personal slush fund," the release added.
Attorneys Eric Bland and Ronald Richter Jr. added that the Plyler family is committed to providing investigators any cooperation needed and is grateful to the U.S. Attorney’s office for the charges that have been brought against Mr. Laffitte.
This article originally appeared on Greenville News: Russell Laffitte federally indicted for conspiracy; wire, bank fraud
