Murdaugh accomplice Russell Laffitte sentenced to seven years in federal prison

Russell Laffitte, the heir to a Hampton County banking dynasty, was sentenced to seven years in federal prison for his role in helping Alex Murdaugh steal from clients and his law firm.

The small courtroom on the fourth floor of 85 Broad Street was packed with nearly 100 people in the audience seats, many of them friends and family of Laffitte’s. Besides the federal prosecutors Emily Limehouse, Kathleen Stoughton and Winston Holliday, and the defense attorneys Mark Moore and Michael Parente, an attorney from the S.C. Attorney General’s office, Johhny Ellis James, sat behind the federal prosecutors.

A federal jury in Charleston last November convicted Laffitte of six counts of financial crimes, according to previous reporting by The State. Government witnesses testified that Laffitte and Murdaugh carried out elaborate thefts using the bank’s various accounts and procedures to hide their schemes.

Much of the stolen money came from settlement funds Murdaugh had won in lawsuits for various former clients. Murdaugh persuaded the banker to set up conservatorships for his former clients using the settlement money, which Murdaugh then plundered for his own use. Laffitte also profited off the scheme by collecting tens of thousands of dollars for overseeing the various conservatorships.

4:18 p.m. — Russell Laffitte is sentenced

Judge Richard Gergel has sentenced Russell Laffite to 84 months followed by five years of supervised release. He also ordered Laffitte to pay $3.5 million in restitution.

3:19 p.m. — ‘I am a victim of Russell Laffitte’

Several of Russell Laffitte’s victims and their attorneys spoke Tuesday afternoon, sharing how his thefts have impacted their lives. There were in exceptionally vulnerable positions when they encountered Murdaugh and Laffitte, Gergel said. Some had lost close family members, and some were survivors of terrible accidents.

“I will forgive you but I will never forget you,” said the mother of Hakeem Pinckney, a deaf man who died while on a ventilator. Laffitte was his conservator at the time of his death.

Alaina Plyler Spohn and Hannah Plyler, two sisters who won a settlement after surviving a car wreck that killed their mother and brother, shared the pain of being victimized by someone they came to trust. They were 12 and 8 years old when the car crashed, and Laffitte was accused of misusing and stealing money from the settlement.

“I was just another dollar sign to him... I felt like a burden to Russell, I felt undeserving,” said Alaina Plyler. In stark contrast to the portrait of a giving and generous community member, Plyler described how Laffitte never checked in on her and cut off contact when she turned 18.

“This is the tale of two men... Character speaks when no one is looking,” said Eric Bland, the Plylers’ attorney. Addressing the court, Bland said that Laffitte used money taken from conservatorship accounts to build a pool for himself and pay off high interest loans.

“He was the guardian of the gate. There are always going to by Alex Murdaughs out there, wolves in suits, but he had the ability to say no,” Bland said.

2:51 p.m. — ‘This has been one of the most notorious cases in the state’s history, says Laffitte’s lawyer

In a lengthy back and forth, Laffitte’s lawyer, Mark Moore, formerly a veteran prosecutor, and Judge Gergel discussed striking a balance between deterrence, good deeds and taking responsibility for crimes. At stake is how long Russell Laffitte will spend in federal prison.

“How do I deter this type of tragedy again? And believe me it is a tragedy,” Gergel posed. Deterrence was especially necessary in white collar crime cases because perpetrators commit crimes they believe they will get away with, Gergel said.

Gergel acknowledged the role Laffitte played in his community as well as his many family ties. Laffitte, Gergel said, was “chastened,” and Gergel did not believe that the disgraced former banker would ever commit a crime again.

But the federal judge said that he needed to weigh that against crimes committed against “extremely vulnerable people” — crimes the judge believes Laffitte was complicit in and profited from.

“He treated them like they were players on a chess board, moving that money around. It’s a very different picture than the one that these good people from Hampton County have brought in today,” Gergel said.

Undeterred, Moore agreed that the “notorious” nature of the case meant that Laffitte’s reputation had been destroyed, not just nationally but internationally. Laffitte was also going to bear the brunt of the restitution that Alex Murdaugh would be unable to pay.

“He and his family have already been substantially punished,” Moore said.

1:00 p.m. — Russell Laffitte apologizes to his victims

In a brief statement, Russell Laffitte turned to address the victims of his crimes and apologized for his role in the thefts. The former CEO of the Palmetto State Bank apologized for making loans out of accounts and neglecting details that led to them being stolen by Alex Murdaugh.

He also expressed remorse that his actions meant that the victims had to re-live in court the traumatic events that earned them the settlements. “I am horrified,” Laffitte said.

“I should have taken more time to get to know you all,” Laffitte told the victims and their families.

Addressing his family and the wider Hampton County community, which supporters testified he had devotedly served, Laffitte offered a simple apology for the harm he had caused.

“I am deeply sorry that I let you down,” Laffitte said. “It was my honor to be the fourth generation Laffitte to get to run the bank... If I could do it over again, obviously we would do things differently.”

12:13 p.m. — Russell Laffitte’s wife, family, friends make plea for mercy

“I realize there are people in this courtroom who have lost so much,” said Laffitte’s, Susie, but she pleaded with Judge Gergel to “as you determine our family’s future today, please consider that Russell is so many things to so many people.”

Recounting how Laffitte asked her to marry him after just two months of dating, Laffitte’s wife said that her love for her husband continues to grow every day. Laffitte has been unable to sleep and lost weight as he “constantly questioned” why he didn’t do a better job for the victims.

Laffitte has been described as a trusted linchpin of his family and his community, with longtime friends recounting how he led local fundraisers and would work the concession stand at school sports games.

“He is usually the first person that every member of the family, whatever the generation, reach out to for help and advice,” Susie said.

Nine friends and family members will offer testimony before Gergel about Laffitte’s character. One friend, a fellow banker, described Laffitte as a “gentle giant” who comforted him after the death of his son and once drove six hours to bring him a generator after a hurricane.

After Carter Laffitte, Laffitte’s 20-year-old daughter, described her love for her dad and the numerous actions he did to inspire that love, Laffitte stood and hugged her as she went back to her seat.

11:09 a.m. — Judge rules that Laffitte’s sentence must be based on all money stolen

U.S. District Court Judge Richard Gergel overruled a battery of objections made by Laffitte’s lawyers. Gergel’s rapid fire rulings represent a setback to defense attorneys’ attempt to limit what the judge can consider when deciding on a sentence, including the amount of money stolen.

Gergel appeared almost amused as he quickly shot down some of the objections raised by Laffitte’s attorneys, who argued that the court should not consider unauthorized loans that Laffitte extended to Murdaugh in imposing a sentence.

Regarding one $750,000 loan Laffitte extended to Murdaugh to make renovations to his Edisto Beach house, Gergel asked, “Was it used for the beach house?”

“In the end it was not,” Laffitte’s attorney responded.

“What do you mean ‘in the end?’” Gergel asked, before overruling the objection.

While he acknowledged that Murdaugh was the “leader” of the scheme, Gergel called Laffitte an “integral” player. The banker’s actions constituted “a serious, severe abuse of public trust,” Gergel said.

10:40 a.m. — Laffitte-Murdaugh scheme was ‘extraordinarily complex,’ says judge

Assistant U.S. Attorney Emily Limehouse summarized a few of the ways Murdaugh and Laffitte concealed the movement of more than $1 million. On one occasion, Laffitte broke a $25,000 payment into a $16,000 money order and $9,000 in cash to avoid reporting requirements.

On another occasion, Laffitte helped conceal missing money in a conservatorship account by issuing a line of credit and took steps to help conceal funds from the IRS, Limehouse said.

“Maybe I’m just simple…. but this was an extraordinarily complex criminal scheme that involved Mr. Murdaugh and Mr. Laffitte,” said U.S. District Judge Richard Gergel, who has served as a federal judge since 2010 and oversaw the trial of Dylann Roof, who was sentenced to death for killing nine parishioners at Mother Emanuel AME Church in Charleston in 2015.

“This is as sophisticated a crime as I have seen in my 13 years on the bench,” Gergel says at one point.

At another point, Gergel calls what Laffitte did “one of the state’s most notorious financial crimes.”

10:09 a.m. — Prosecutor suggests two sentence options

Sentencing for Russell Laffitte, the heir to a Hampton County banking dynasty, is beginning in a federal court in Charleston, South Carolina. Laffitte, formerly the CEO of Palmettor State Bank in Hampton, was convicted for his role in helping Alex Murdaugh steal from clients and his law firm.

The morning’s proceedings began as federal prosecutor Emily Limehouse, who won the conviction against Laffitte, outlined the government’s recommended sentences. One offer, Limehouse said, was that Laffitte would admit “full responsibility” and waive his post-sentencing rights in exchange for prosecutors recommending a 72-month sentence.

Another offer, which would not require Laffitte to admit responsibility, was a recommended sentence of 87 months but it was contingent on Laffitte making full restitution to all victims within 60 days.

If necessary, Laffitte would have to liquidate his assets, Limehouse said.