Laffitte ‘stole’ money from accounts he supervised, says cousin and SC bank board member
The second day of testimony in the trial of former banker and Alex Murdaugh associate Russell Laffitte, a bank executive testified as to how thousands of dollars were “stolen” from accounts Laffitte managed.
They included payments made to Laffitte and Murdaugh’s family and to buy a boat for Murdaugh.
Laffitte is on trial on federal charges of bank and wire fraud.
A dramatic moment came when prosecutor Winston Holliday asked Norris Laffitte, a Palmetto State Bank board of director member and Laffitte’s cousin, how the board finally came to fire Laffitte, the bank’s then-CEO and a favored son of his father, Charlie Laffitte, the chairman of the board
For several minutes, Norris Laffitte — apparently overcome by the memory of having to take drastic action against one of his relatives at the family-owned bank — fought back tears and couldn’t speak. He took a sip of water and continued to be silent.
Finally, Norris Laffitte spoke about the duties of a conservator and how the conservator is responsible to the bank, to the shareholders and “to look after the entities he is responsible for.”
He ticked off a list of more than a dozen checks and payments for more than $1 million total to others that Laffitte had approved out of three conservatorships he was responsible for: Hakeem Pinckney, Malik Williams and Arthur Badger.
“I’m just baffled by all of it,” Norris Laffitte said on the stand at the Charleston federal courthouse. “We had to get rid of him. He lied to the board. We asked, ‘How many times did this happen?’ He said, ‘Once or twice.’
“Golly, you had the two Plyler girls, Malik, Hakeem, Natasha,” Norris Laffitte said. “I don’t know that I still have all of them.”
Norris Laffitte, a member of the Palmetto State Bank’s board of directors, described a dramatic discovery of missing money from several accounts at the end of 2021 that led to Laffitte’s removal as CEO of Palmetto State Bank.
Shortly before, Laffitte had emailed board directors that, “We have found another two settlements that were stolen.”
“Are you saying other conversions took place along the same lines as Badger?” Norris Laffitte wrote back, referring to a previous case of money that went missing from one of Laffitte’s accounts. “How many more are out there?”
The money Laffitte withdrew from various accounts include $10,000 sent to the account of Maggie Murdaugh, Murdaugh’s late wife. Another $920 was transferred to Murdaugh Charters. Norris Laffitte testified that he believes the money was to pay back a loan Murdaugh took out on a boat.
Murdaugh is now charged with the murders of his wife, Maggie, and son, Paul, as well as various financial schemes he allegedly took part in with Laffitte.
Norris Laffitte testified that another $3,000 was sent to Murdaugh Charters the same day as the other check. Another $100,000 was sent to Charles Laffitte, the board’s chairman and Laffitte’s father. Norris Laffitte testified that Laffitte told him the money, taken from the account he was overseeing for a crash victim, was to repay a loan his father had made to Murdaugh.
Defense attorney Matt Austin argued in his cross-examination that Laffitte was within his rights as the bank CEO and conservator on the accounts to make transactions.
“That is not dependent on anyone else saying it is OK,” Austin said, citing the bank’s own bylaws.
On Jan. 7, 2021, the board of Palmetto State Bank held a special meeting in which it severed its relationship with Laffitte. Only his father, Charles Laffitte, then the board’s chairman, voted against.
Laffitte’s sister abstained, Norris Laffitte testified Tuesday.
