Wilmington, Del. – The grimy details of Blaine Murphy’s criminal scheme have been laid bare as federal prosecutors charge the Florida man with wire fraud and making false statements on Paycheck Protection Program (PPP) loan applications.
Murphy, 56, from Naples, Florida, stands accused of submitting fraudulent PPP applications during the COVID-19 pandemic. Between March and June 2020, he concocted a scheme involving nine separate businesses to inflate average monthly payroll and employee counts, deceitfully obtaining over $350,000.
According to prosecutors, Murphy also falsely claimed not to own or manage other businesses and provided fake tax documents in his loan applications. His fraudulent actions came at the expense of small businesses and their employees struggling during the pandemic.
In a statement, U.S. Attorney David C. Weiss for the District of Delaware declared, ‘During a generational public health crisis, this defendant took advantage of a federal government program intended to help keep small businesses and their employees afloat. The U.S. Attorney’s Office brings these charges to hold him accountable.’
Murphy faces up to 30 years in prison if convicted on the charges. Assistant U.S. Attorneys Bryan C. Williamson and Jesse S. Wenger are prosecuting the case, which was investigated by the FBI Baltimore Division’s Dover Resident Agency.
The Department of Justice established the COVID-19 Fraud Enforcement Task Force to combat pandemic-related fraud. Anyone with information about PPP loan fraud can report it to the National Center for Disaster Fraud Hotline at 866-720-5721 or via their Web Complaint Form.
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Key Facts
- State: Delaware
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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