A former bank chief executive has been sentenced to seven years in prison for helping convicted murderer Alex Murdaugh steal around $2 million (£1.6 million) from legal settlements. Russell Laffitte, who ran Palmetto State Bank in South Carolina, is the first of Murdaugh's associates to face prison time.
Laffitte was instrumental in the fraud, using his position to collect tens of thousands of dollars, claim up to $450,000 in untaxable fees, and transfer large sums to Murdaugh. At his sentencing, he apologised to victims but maintained his innocence, claiming he was taken advantage of by Murdaugh, a major customer.
Prosecutors argued that while Murdaugh was more culpable, Laffitte was the only one who could have stopped the scheme and instead enabled it repeatedly. In addition to the prison term, US District Judge Richard Gergel ordered Laffitte to pay over $3 million in restitution, partly covered by Murdaugh.
Murdaugh, who is serving life for the murders of his wife Maggie and son Paul in 2021, admitted to widespread financial crimes, including stealing $3.7 million in 2019 alone. He still faces nearly 100 financial charges.
Separately, an associate known as Cousin Eddie was released on bond for his alleged role in a botched assisted suicide scheme. Meanwhile, a grand jury is examining the 2015 death of teenager Stephen Smith, whose case was reopened in 2021 based on information from the Murdaugh investigation.
