Thread by @DrewTripp

We're all set up in the federal court in downtown Charleston, waiting on trial to resume for Russell Laffitte. U.S. Attorneys will cross-examine Laffitte today after he spent 4 hours on the witness stand Friday answering questions from his own defense attorneys.

I'm fortunate to have @TaraJabour back in court with me today. She'll be in the courtroom again taking her own notes and preparing for TV later today while I log the blow-by-blow of testimony in the media room for social media / web.

@TaraJabour It's going to be very interesting to see what happens today. On Friday, Laffitte came off as very prepared and very confident from the witness stand. He had quick answers for everything (even if some answers contradicted earlier testimony & evidence).

@TaraJabour The main takeaway from Laffitte's defense testimony was (paraphrasing) "I didn't realize what I was doing. I feel terrible I didn't catch on sooner. I never intentionally stole or helped Alex Murdaugh steal. I trusted Alex and he set me up to take the fall."

@TaraJabour Here's my story recap from Friday. Again, these stories aren't going to be as rich in quotes and minutia as my Twitter threads will be, but it's a roadmap.
abcnews4.com/news/local/laf…

With respect to Laffitte saying Murdaugh was the mastermind who set him up, Alex Murdaugh has apparently offered to testify on Russell's behalf saying exactly that (and nothing else). In exchange, he'd want immunity from future prosecution by the AUSA. The feds aren't having it.

Right now, sounds like we're dealing with some technical difficulties in the media room. Or maybe court hasn't started still? Morning session was still delayed because of a late juror as of about 15 minutes ago. IT was just in the room and left. We haven't received clear word.

Confirmed: Trial has started. NOTHING feeding through in the media room. We're all headed up to the courtroom. Will update soon.

Just like that, the feed starts up as we're all walking out of the room.

Limehouse questioning Laffitte. He doesn't dispute making unsecured loans to Murdaugh to cover overdrafts at Murdaugh's request. Laffitte agrees records shown are accurate & authentic to his knowledge.

Limehouse brings up an advance Laffitte made to Murdaugh for $284,787 from Murdaugh's farming credit account. The money was used to pay off a loan Murdaugh had gotten from Laffitte out of Hannah Plyler's conservator account.

Laffitte agrees that's what happened. Limehouse brings up email Laffitte sent Murdaugh about the $284K "farming" advance, saying he was going to apply that to Alex's debt to Plyler because she was turning 18 and Laffitte needed to close the account.

Laffitte agrees that's what happened. Limehouse says that means Laffitte leant money to Murdaugh for "farming" when he knew fully the money was not being used for that purpose.
Laffitte tries to argue the previous money Murdaugh had been loaned could've been used for farming.

"I didn't spend the money for him, I transferred the money to pay off the loan," Laffitte said.
Limehouse points out contradiction by Laffitte from his pre-trial testimony about what he knew re: where the money was going.

Limehouse is flying through checks, emails, documents, etc we've previously seen as evidence of Laffitte's involvement with Murdaugh in all the stolen & misappropriated funds. Russell is testifying he signed or authored them all, but didn't realize it was stolen money.

Laffitte says he simply "did as the customer directed," but wishes he would've paid closer attention.

Limehouse brings up checks written using funds from Natasha Thomas at Murdaugh's request. Laffitte says he wrote the checks "at the direction of my attorney."

Limehouse catches him in a contradiction. Laffitte says he didn't know funds for improper checks were from Thomas / Pinckney settlement funds because the checks were written out to the bank, not to him as PR/conservator for Thomas and Pinckney.

But Laffitte testified seconds earlier he was relying on Murdaugh as HIS attorney in the Thomas / Pinckney cases to say where money should go. So he must've known where the money was coming from.
Laffitte: "I misspoke." Says he was relying on Murdaugh as AN attorney, not his.

Laffitte testifies if he looked closely into every odd or unusual request he got from a customer, he'd be doing it all day. Says he wishes he'd given more scrutiny in hindsight. "I did as the customer directed."

(Limehouse is really speeding through all the evidence and her questions, so I'll admit I'm not catching as much as I usually do.)

Limehouse gets Laffitte to admit he "structured" money with respect to Murdaugh ("Structuring" = avoiding $10K FDIC transaction flag).

Limehouse brings up an email chain where Murdaugh sent Laffitte instructions on how to divide up stolen money (which Laffitte says he didn't know was stolen). Murdaugh tells Laffitte to send a NEW email with same instructions to the accounting dept. at PMPED. (Keep reading.....)

Limehouse brings up how Russell has testified he has been cooperative in the investigation. But Limehouse says the original email Murdaugh sent to Laffitte was NOT in evidence Palmetto State Bank provided to FBI. That email was taken off the server. FBI got it from PMPED later.

We move now to June 7, 2021 murders of Murdaugh's wife and son. Limehouse says Laffitte testified pre-trial re: the murders he (Laffitte) thought Murdaugh might have a gambling problem, based on his financial habits & behaviors.

We're back on the $750K beach house loan, which we've heard Laffitte's father & sister say THEY knew before approval was going to be used beyond just beach house. Russell agrees that was always his understanding. Limehouse says but that's NOT what Laffite testified pre-trial.

We now transition to the money from the beach house loan going to Eddie Smith. Laffitte says again he thought "CE Smith" was a contractor working on the beach house, didn't know him.

But Limehouse brings up 8 previous loans to Smith from Palmetto State Bank.

Limehouse then points out how Laffite authorized every single one of the bank's loans to Eddie Smith. Laffitte says this was a function of his job, he wasn't the loan officer on all those loans. Laffitte also says they were attorney loans (advances from attorneys to be paid back)

Limehouse turns this back on Laffitte re: not knowing who Eddie Smith is:

Limehouse: "But at a community bank you have to know your customer, right?

Laffitte: "I don't know all my lawyer loans."

Now we're at the $680K check Laffitte sent to PMPED in Oct. 2021 to cover the misappropriated Badger funds.

Laffitte contends he discussed with his father & sister, and all agreed it was the right move. But Laffitte adds he had full authority under bank bylaws to do it himself.

Limehouse pointing out how Laffitte left out a lot (his knowledge / involvement / how much money he got in PR fees / Plyler reimbursements) when he notified the executive committee and bank board of the Badger settlement check to PMPED. Also didn't consult attorneys.

Limehouse gets Laffitte to agree, yes, he collected conservator / PR fees from Arthur Badger, Natasha Thomas, Hakeem Pinckney, but never performed PR/conservator functions (managed money) for any of them. Never even met Pinckney. Yet made over $450K in fees from their money.

Laffitte just admitted to possible tax fraud on the stand. He said he never reported the income he made on PR/conservator fees for Badger, Thomas & Pinckney because he was "stupid," he KNEW the checks were all made out to Palmetto State Bank & thought he could get away with it.

Laffitte said he repaid the IRS in 2021 for uncollected taxes on the Badger / Pinckney / Thomas cases after consulting with an accountant upon realizing scope of his ties to Murdaugh. Laffitte says he figured it would all come out anyway, wanted to get ahead of it.

Laffitte rejects Limehouse's characterization that he accepted all the untaxed fees on these PR/conservator cases in exchange for allowing & helping Murdaugh to do whatever he wanted with the rest of the money. "I did not."

Matt Austin asking Laffitte redirect questions for the defense.
Austin: "Did you believe Alex Murdaugh was YOUR attorney (in these cases)?"
Laffitte: "I did."

Laffitte earlier testified he misspoke after Limehouse got him to say the same thing.

Austin brings up the email Murdaugh sent to Laffitte directing him where to divvy the stolen Badger settlement money & telling him to send PMPED accountant Jeanne Seckinger new email to recut checks based on those instructions.

Laffitte responding to Austin admits he kept a copy of the Murdaugh email in his Plyler files in case he ever needed to give an accounting.
(Remember, Limehouse said minutes ago Laffitte / PSB didn't provide this Murdaugh email in response to subpoena. Wasn't on the server).

Laffitte says he never in his 27 years as a banker checked to see how money loaned to bank customers was being spent. Figured once the money was in the customer's accounts, it was their money to spend as they pleased, as long as they paid it back. Doesn't feel this was wrong.

Re: actions in fall 2021 (PMPED check, emails to board), Austin asks if Laffitte was trying to cover his tracks.
"Absolutely not." It's a family bank and the bank was his heart and soul.

Austin rests. Morning break is upon us.

Both attorneys say they're resting their case. No rebuttal coming from Limehouse. Gergel says he will work on finalizing a jury charge over lunch, and then the two attorneys will give their closing arguments after lunch. We'll likely begin jury deliberations today.

Back in the media room, we're discussing what we heard in the morning session. It's hard to make this point in type, but Laffitte kept up his confident demeanor on the witness stand. He's consistent: He simply did as Murdaugh instructed, but didn't know what he was REALLY doing.

That said, Limehouse did catch Laffitte contradicting himself several times re: previous testimony and evidence. Did they jury catch that? We don't know.

Judge Gergel just introduced a new Murdaugh pronunciation I haven't heard before: MURR-DOW.

Add that to MURD-ick, MURR-DOCK (the 2 I've always heard growing up in the Lowcountry), MURD-aww, MURR-doff, MURT-ah)

If I'm a juror, the most damaging thing to himself Laffitte said was in response to his own attorney Matt Austin ... He didn't file taxes on $450K in fees he took from being PR/conservator b/c he KNEW checks were made out improperly to PSB, & thought he could get away with it.

So that (to me) shows Laffitte had a close understanding of how things work re: proper accounting & paperwork. He knew improper checks when he saw them, & what those errors would allow him to get away with accordingly. But he didn't know or suspect what was happening re: Alex?

Because ^^ that ^^ is the crux of all this, right? Laffitte keeps saying he just rubberstamped everything Murdaugh asked him to do, unquestioningly. He trusted Murdaugh as "HIS" attorney in connection to all the PR/conservator cases. But at some point, the lightbulb went off.

To quote @TaraJabour ... "It doesn't make sense." Laffitte signed all these documents & checks & disbursement sheets for years. He admits as much. And he was the fiduciary for Badger, Pinckney & Thomas (yet he admits did ZERO fiduciary work for them). Yet he didn't know/suspect?

@TaraJabour We're back from lunch break. We're proceeding with the charge conference, where attorneys draft what's known as the jury charge. This amounts to last-minute amendments to indictments before a judge reads off charges to the jury and gives instructions before they deliberate.

@TaraJabour OK, attorneys for the government and defense are about to give their final arguments. Jury is returning to the courtoom. Standby for updates.

Limehouse starts her final argument largely the way she began her opening argument: Absolute power corrupts absolutely. Unchecked power and privilege for decades between the Murdaughs and Laffittes allowed this to happen.

Limehouse: "Maybe none of this would've happened without Alex Murdaugh, but none of this COULD have happened without Russell Laffitte." Testimony that Russell was a "meticulous," "cross your t's & dot your i's" guy proves it couldn't have.

Limehouse focuses on conspiracy charge: Did 2 or more people enter into an understanding? Did the defendant know? Did he join (participate) & further the crime?

Limehouse: Laffitte serving as PR/conservator & related actions were under false pretenses leading to theft of funds.

As proof of the conspiracy, Limehouse points to Laffitte taking the very first loans out of Hannah Plyler's accounts, then self-dealing with low interest rates, miscalculated interest, no late fees, no promissory notes filed. Never used a dime of his own money to pay them back.

As to loans to Murdaugh, Limehouse says chain of email shows "the loans were the defendant's idea." "This sets up a pattern." For next 3 years, Laffitte sees Murdaugh in overdraft, transfers money out of Plyler's accounts, then within days from stolen Murdaugh client funds.

"Murdaugh was not calling the shots. The defendant was calling the shots. Murdaugh just spent his money and relied on (Laffitte to cover them)."
Brings up Malik Williams case. Murdaugh didn't work that case. Only Laffitte knew about it. Laffitte made Alex loans from Williams.

Limehouse admits the loans to Murdaugh were not technically illegal, but they prove motive and intent by Laffitte.

Limehouse says amounts of money from stolen checks were the exact same as disbursement sheets from settlement proceeds, made out directly to PSB to avoid tracking.

Limehouse showing how all the suspicious check requests from Murdaugh to Laffitte were for exact same amount as PR/conservator settlement disbursement sheets, and were being written within days or the SAME day. Laffitte signed all. Settlement funds in memo. "Of course he knew."

Limehouse talking about Laffitte's earlier admission that he didn't pay taxes on PR/conservator proceeds. Reiterates how Laffitte told jury he simply "didn't want to" and knew he could get away with it b/c checks were made out to the bank, not him as they should've been.

Limehouse brings up fact these checks for PR fees Laffitte cashed were ORIGINALLY drafted correctly (to Laffitte), but emails show they were voided & re-cut incorrectly (made out to the bank). She says this proves Murdaugh & Laffitte knew what they were doing.

Limehouse bringing up how all the emails showing Murdaugh and Laffitte were secretly negotiating how to divvy money were wiped from Palmetto State Bank's servers, weren't provided. Prosecutors found them later on PMPED's servers. She says this shows Laffitte was not cooperative.

Limehouse brings up particular case where Murdaugh left a check with Laffitte and told him to wait for his instructions before filing it, and Murdaugh would collect the leftovers. Limehouse brings up how Laffitte testified Murdaugh would wait to cash checks, but shows he did too.

Limehouse brings up another contradiction. Laffitte said over & over he never paid attention to memo lines on checks. But Limehouse brings up how on stolen funds from Thomas, deposit slips filled out by Laffitte had Thomas's settlement funds listed on them (same as the checks).

Limehouse: "Conspiracy is an agreement; the agreement is the crime. ... Laffitte conspired with Murdaugh to steal settlement funds from clients."

Limehouse transitions to counts 2 & 3: Wire fraud and bank fraud. She reiterates a lot of her same points from count 1, rehashing what we've already heard. Now going into the final three counts of the indictment: misapplication of bank funds.

Do Laffitte's crimes live up to 4 criteria of misapplication of bank funds?
1. He was an officer of the bank. Yes.
2. The funds were insured by the FDIC. Yes.
3. He issued loans for fraudulent purposes. Yes.
4. He intended to harm bank. Yes. Sham loans expose bank to big risk.

^^ The above is Limehouse's analysis, not mine. Don't want that attribution to get lost in this. If it's a paraphrase or me editorializing in some way by bringing up old info or pointing out contradictions, I'll usually put that in parentheticals.

Limehouse reiterating how Laffitte was not forthright about his own profits from and knowledge of the schemes when he finally went to the bank in October 2021 (making it seem like it all was the BANK's problem and not a Russell problem). She says it further proves intent to harm.

Now Limehouse showing how the $750K beach house loan for Murdaugh was not properly tracked or clerked for over a month after money had already gone out the door. No mention of attorney fees, $350K wire to Chris Wilson, huge overdraft, of $400K transfer to cover the overdraw.

"The crime was committed when the sham loan was extended for beach house renovations knowing the money was going to other purposes."

Limehouse shifts to the $680K check to PMPED to pay back Laffitte. She brings up something I either forgot or missed -- Russell telling PMPED the day he delivered the check he hadn't even told anyone he was doing this. Contradicts testimony Laffitte consulted Dad & sister first.

Limehouse brings up a contradiction I caught in real time re: a secret recording Laffitte made at the Nov. 2021 board meeting. He said in the same breath he recorded it for his sister (who was late), but immediately said he didn't even realize he recorded it until months later.

Limehouse restates testimony by Palmetto State Bank leaders. When they found out about the Badger case, the payment had already been made. There was nothing that could be done. Board was in damage control mode. They wanted to do anything that could be done to minimize the loss.

Limehouse says this clearly demonstrates the harm to the bank before you even get to the fact Russell hid from the board his intimate involvement in all the illicit transactions and all the money he made from it.

Limehouse says Murdaugh was the "rainmaker" who brought in the money, but says Russell was steering the ship.
"It was not only a firing offense. It was a series of criminal offenses." Repeats how it couldn't have happened BUT for Laffitte. Asks jury to hold him accountable.

Limehouse has rested, taking afternoon break and now awaiting final arguments from the defense. HIGHLY DOUBT we're getting a verdict today, or even jury deliberation.

(As to not draw the ire of the federal court, which does not allow cameras or dissemination of images / broadcasts from inside, I'm NOT going to take a photo of the two ... NAY, THREE unplugged, empty coffee pots in the corner of the media room taunting us each day.)

(Media nor audience have been allowed to bring in outside drink. We can bring in empty water bottles. For those of us who exist on caffeine, this no coffee thing has been a first-world struggle of the highest order.)

(To that point about caffeine, I've found the cold brew at Miller's All Day just up from King & Broad is quite good. And the court staff have highly recommended the coffee at Fast & French on Broad right across from the court. Haven't tried it yet. Will update.)

(Back to our regularly scheduled programming, already in progress.)

Bart Daniel begins the defense's final arguments. Starts by saying Russell Laffitte never got one red cent from Murdaugh's stolen money. Immediately goes hard in on Murdaugh as a "cheat, scoundrel."

Daniel recharacterizes what happened in the aftermath re: discovery of Arthur Badger stolen funds. Says Russell met with CFO Jeanne Seckinger right away to piece together the puzzle. Gave up documents to law enforcement to help.

Daniel says Russell's actions were those of a good man who got conned, not a guilty man. Says he never would've signed his name over and over and again, much less filed those documents in probate court public records, had he known he did anything wrong.

Daniel admits it isn't a good look or best practices that Laffitte took the loans, but says there was still nothing illegal about that. And reiterates how he thinks Laffitte has tried to cooperate, own up and hold himself accountable.

Daniel trying to distribute blame for the accounting shortcomings that allowed this all to happen, saying Murdaugh's own firm bears blame as well, because the fraud originated there with the bad checks passing under their staff's noses.

Daniel brings up prosecutors making a big deal of Laffitte, Murdaugh using loans to pay off loans. Daniel says there's absolutely nothing wrong with that. It happens at banks every day. Cites someone refinancing a mortgage - a new loan to pay an old loan. You still owe the same.

Daniel returns to Murdaugh now as an enigma of "confusion and chaos." "Patient." "He would plot things out years in advance." " 'The Alex I thought I knew never existed.' " "The level of deceit was unimaginable.' "

Another gem from Daniel re: Murdaugh - "The master manipulator manipulates again."

"We know he tricked and fooled the law firm. He tricked and fooled Russell and Palmetto State Bank, ... Bank of America ... the government."

Daniel defends Russell saying he never reads the memo lines in checks & how it's "for the customer." Tells an anecdote about a kid in his neighborhood who cuts his grass. Daniel says his wife often writes "Thank you" in the memo line on checks to the boy.

(Daniel is wandering back and forth between the jury and microphone, so I'm not catching everything.)

He's been talking variously about lots of things that (to me) don't seem to speak directly to the nature of the prosecution's allegations. Ancillary stuff re: PMPED, PSB.

Second this from Atty. Eric Bland. The closest Laffitte has come to contrition has been "I wish I / we had caught it sooner." And also how it's impacted him, down to the emotional level. "Furious."

https://twitter.com/TheEricBland/status/1594754532160032769?t=nkI35xXIX8puJs3bXos_OA&s=19

Another anecdote by Daniel saying he gets teary eyed to this day thinking about WWII soldiers storming the beaches of Normandy. He loves our country, but glad he lives in a country where you can criticize the government. And he thinks the govt. has gotten it wrong re: Laffitte.

Bart Daniel concludes by asking the jury not to waiver or buckle, but to find Laffitte not guilty.

Now Matt Austin is ALSO giving a closing argument for the defense. He started at 4:09 p.m.

Austin begins saying he hasn't heard evidence of this case being indicative of "absolute power corrupts." Austin criticizes govt. for repeatedly "hanging Alex Murdaugh around (Laffitte's) neck." (making it about Alex, IOW ... which is largely what Daniel did right before him.)

We just had an objection (well almost) in final arguments. Asst. U.S. Attorney Winston Holliday interrupts Austin, saying he's dangerously close to misstating the nature of the govt's charges against Laffitte. Judge Gergel warns Austin to be careful.

Austin - "There's been no evidence Russell intentionally tried to help Alex Murdaugh achieve any of these goals." This was right after saying how Laffitte actually went above and beyond for the Plylers because he made Hannah more money than she started with.

Austin continued saying just because Laffitte didn't go "above & beyond" for all his PR/conservator clients doesn't prove he was part of a criminal conspiracy to defraud them.

Holliday has interrupted Austin 3 more times to ask Judge Gergel for intervention on Austin departing from agreements made earlier about admissibility & framing of certain parts of testimony or evidence. Austin has gotten 3 warnings.

Sorry y'all, I have been busy proofreading our TV report before it goes on-air at 5.

Austin ended his final arguments by saying the absolute power analogy from Limehouse doesn't fit. Says there was no "vicious" criminal intent by Laffitte.

Holliday now in rebuttal for AUSA.

Holliday: "Defense kept saying 'everybody got paid back.' There's a reason they got paid back. They got paid back with stolen money!"

Holliday brings up Daniel in opening saying "wild horses" couldn't keep Laffitte off stand. Reminds jury Laffitte on stand admitted to avoiding taxes, structuring money, lied several times.
Holliday: Maybe those wild horses should've dragged him away.

(A+ Stones reference)

Holliday: "(Russell) is not an 'Aww, shucks' guy ladies and gentlemen. He knew exactly what he was doing."

Holliday: "(Russell) orchestrated this. He's a banker. He's smart."
"The truth is Russell steered the Titanic into the iceberg, and he sank it. You can't unsink it."

(Holliday is doing that thing Daniel did where he wanders between the podium and the jury box, so it's like hearing a conversation behind a door here in the media room.)

Holliday: "The $680K's a cover-up." ... "There's not a by-law in this country that supersedes fraud."

Holliday reiterates how the defense's very first witness, PSB compliance office John Peters, said he would've never allowed the checks Russell wrote to clear, and no everyday teller at the bank would've allowed it either.

Holliday reiterates Malik Williams. Not Alex's client. Alex didn't work on that case. Only way Murdaugh could've known is if Russell told him.

Holliday: "Accountability only happens here, in this courtroom. Where facts matter and influence does not."

Holliday discusses Laffitte's own contradictory testimony re: if he knew Eddie Smith. Plus bank employees testified Laffitte sat right up front in the bank & saw everyone. We learned Smith had 8 loans with the bank before getting checks from beach house funds.

Holliday rests. Judge Gergel puts the ball in the jury's court. They can either get their instructions (40 minutes) & begin deliberation tonight, or they can come back tomorrow and start fresh at 9 a.m. Court in recess for a few minutes to let jury decide.

This is Alania Plyler Spohn, for whom Russell Laffitte served as conservator alongside her younger sister, Hannah. Laffitte taking unapproved loans from Hannah's account has been at the core of this entire case.

https://twitter.com/AlaniaSpohn/status/1594715773637132288?t=lHHzbJlIlT7tCYt5jyNGkw&s=19

Judge Gergel rules court will resume with jury charge and deliberation at 9 a.m. Tuesday. That's it for now.