LOS ANGELES—An Orange County man pleaded guilty today in federal court to conducting a Ponzi-style investment fraud scheme that caused approximately 28 victims to suffer a total loss of approximately $2.7 million.
Timothy Melvin Murphy, 70, of Orange, pled guilty to a single count of mail fraud, in violation of Title 18, United States Code, Section 1341. Murphy is a retired colonel in the California Army National Guard who previously served as the Commanding Officer of the Guard’s base in Los Alamitos, California.
At his change of plea hearing, Murphy admitted that he devised and executed a scheme to obtain money from certain of his clients by means of material false promises. Murphy admitted that he executed the scheme through his business, Capital Investors Inc., which he operated out of Orange, California.
Murphy admitted that, in furtherance of his scheme, he offered fraudulent investment opportunities to certain clients and that he created and used a variety of false documents to execute the scheme. The investigation revealed that, in presenting the bogus investment opportunities, Murphy falsely represented that certain clients’ funds would be invested as promised and would generate substantial rates of return, which, in some cases, he falsely portrayed as “guaranteed” rates of return. Murphy created false account statements to mislead his clients into thinking that their money was properly invested and generating the promised income. In fact, as he admitted today, Murphy did not use the clients’ investment funds as he promised he would, and the government estimates that Murphy’s victims suffered losses in the amount of approximately $2.7 million.
The charge of mail fraud carries a statutory maximum sentence of 20 years in federal prison; a fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greatest; and three years’ supervised release. In addition, Murphy will be required to pay restitution to the victims of his fraud scheme.
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Our sweet Mother now in Heaven.
ReplyDeleteSo it's been 4 years since Our Mother was scammed by a Ponzi scheme by (an in-law-by marriage), Murphy (figure that out). This scumbag Murphy was caught once in 2001, disbarred by FINRA. for taking clients funds for his personal use! Then again he does it in 2005, right after Our Father passed away, this scumbag crook Murphy convinced our Mom to invest $200k. Well this scumbag Murphy was prosecuted by the FBI and is serving 8 years in Prison. Our Sweet Mom had to live on her very small Social Security check, all the while this Scumbag Murphy lived like a KING on other elderly people's money! Please if you or your elderly relatives invests, check out the investor at www.finra.org
Our sweet Mother now in Heaven.
ReplyDeleteSo it's been 4 years since Our Mother was scammed by a Ponzi scheme by (an in-law-by marriage), Murphy (figure that out). This scumbag Murphy was caught once in 2001, disbarred by FINRA. for taking clients funds for his personal use! Then again he does it in 2005, right after Our Father passed away, this scumbag crook Murphy convinced our Mom to invest $200k. Well this scumbag Murphy was prosecuted by the FBI and is serving 8 years in Prison. Our Sweet Mom had to live on her very small Social Security check, all the while this Scumbag Murphy lived like a KING on other elderly people's money! Please if you or your elderly relatives invests, check out the investor at www.finra.org