COLUMBIA, S.C. — On Thursday, an appeals court overturned the conviction and seven-year prison sentence of Russell Laffitte, a banker accused of aiding Alex Murdaugh in misappropriating millions of dollars. The 4th U.S. Circuit Court of Appeals found that key errors were made during Laffitte’s trial by the presiding federal judge.
During the trial, a juror expressed that she was suffering from anxiety, which led to a dismissal after nearly eight hours of jury deliberation, near Thanksgiving in 2022. Judge Richard Gergel spoke with the juror without legal counsel present, and she indicated that while she was on anxiety medication, the reactions of her fellow jurors heightened her stress. Following this discussion, the judge replaced her with two alternate jurors, and soon the jury returned guilty verdicts.
The panel of federal appellate judges noted the quick turnaround from deliberation to verdict raised concerns, especially given the circumstances surrounding Juror No. 88’s dismissal. They stated that the way Judge Gergel handled the situation compromised Laffitte’s constitutional right to an impartial jury.
Federal prosecutors announced their intent to retry Laffitte, emphasizing that the mistakes lay with the judge’s actions rather than the charges themselves. U.S. Attorney for South Carolina, Adair Ford Boroughs, indicated that the office is prepared to present the case once again and prove Laffitte’s guilt beyond a reasonable doubt.
The appeals court suggested several options the judge could have exercised, such as allowing the anxious juror to continue deliberating, pausing the process, or declaring a mistrial. Laffitte’s attorney, Billy Wilkins, stated that while a perfect trial is not the expectation, his client deserved full constitutional protections.
Previously convicted on six counts of wire and bank fraud, Laffitte, 53, began serving his sentence in September. However, he is likely to be released while awaiting the new trial. Investigators connected him to a wider scheme orchestrated by Murdaugh, who faced accusations of stealing from clients during his time in law, notably involving vulnerable individuals, including children.
Murdaugh, now serving a life sentence for the murder of his wife and son in 2021, has admitted to committing financial crimes but denies involvement in the homicides, with an appeal of his murder conviction currently underway.
Both Laffitte and Murdaugh hail from prominent families in Hampton County. Laffitte’s family established Palmetto State Bank, which received acclaim, earning him the title of banker of the year in 2019. However, that esteemed reputation was also a factor in the fraudulent activities he engaged in alongside Murdaugh.
As reported by authorities, Laffitte served as the custodian of settlement funds for clients who were especially vulnerable, and he misappropriated a significant amount in fees. Prosecutors claimed he transferred large sums from settlement accounts directly to Murdaugh, who was reportedly dealing with financial pressures exacerbated by an opioid addiction.
In court, Laffitte expressed remorse towards the victims and acknowledged failing in his responsibilities, all while maintaining his innocence and claiming he was misled by Murdaugh, not recognizing the criminal nature of his actions. Although prosecutors conceded that Murdaugh did not fully disclose the scheme to Laffitte, they contended that Laffitte nonetheless facilitated Murdaugh’s acts of theft.