Former Bay Area Resident, John Bryan Murphy, Arrested in Investment Fraud Scheme
SAN FRANCISCO – A former Bay Area resident was arrested yesterday in Barnstable, Massachusetts on charges related to a long-running investment fraud scheme. John Bryan Murphy, 44, was charged on November 30, 2017, by a federal grand jury in San Francisco with ten counts of wire fraud and two counts of money laundering, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The indictment was unsealed late yesterday following Murphy’s arrest.
According to the indictment, between 2012 and 2017, Murphy solicited investments from numerous individuals on the premise that their money would be professionally invested. After receiving these solicitations, several victim investors provided funds to Murphy for the purpose of allowing him to invest those funds on their behalf. In fact, Murphy primarily used these “investments” to support his personal lifestyle, to speculate on the stock market in an account in his name, and/or to repay other victims a portion of their investments.
The indictment alleges that Murphy made payments to various victims that were designed to lull them into a false sense of security, lead them to believe that the promises made to them would be fulfilled, postpone or prevent the victims’ complaints to law enforcement, conceal and prevent detection of the scheme and artifice, and induce victims to “invest” more money with Murphy. The indictment alleges that Murphy obtained over $700,000 in fraudulently solicited funds from victims of the scheme.
After his arrest, Murphy made his initial appearance in United States District Court in Boston, Massachusetts, and was detained pending further proceedings. A detention hearing is scheduled for Friday, December 8, 2017, before Magistrate Judge Donald L. Cabell in Boston.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of 20 years’ imprisonment on each wire fraud count and 10 years’ imprisonment on each money laundering count, fines of $250,000 on each count in the indictment, and restitution for the losses he is alleged to have caused.
Assistant U.S. Attorneys Robert Rees and Kyle Waldinger are prosecuting the case. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
John Bryan Murphy, currently residing in Massachusetts, was charged with investment fraud and money laundering after a long-running scheme that led to over $700,000 in losses. The former Bay Area resident, 44, was detained pending further proceedings and faces up to 20 years in prison if convicted.
Key Facts
- State: California
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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