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Terrance D. Murphy of Mission Viejo, CHARGED WITH FRAUD AND MONEY LAUNDERING

BY Akkeeia

An Orange County man was charged with wire fraud, mail fraud and money laundering in a scheme in which victims in California, Colorado, and throughout the United States, collectively lost more than $1.5 million, announced Salvador Hernandez, Assistant Director in Charge of the FBI in Los Angeles, and Thomas P. O'Brien, United States Attorney in Los Angeles. Terrance D. Murphy, 60, formerly of Mission Viejo, California, was arrested yesterday after surrendering to agents with the FBI in Orange County.

The indictment charges Murphy with eight counts of mail fraud, one count of wire fraud, and five counts of money laundering. The indictment alleges that Murphy took money from victims with promises that their investment would be used to make loans to companies in need of working capital. In return, Murphy promised victims that they would receive their principal, plus 10% interest. In addition, Murphy promised victims that they would receive shares of stock in the companies. Murphy allegedly told victims that they had a right to a refund of all their money on 72 hours notice. Murphy also allegedly told victims that he would personally guarantee their investments with funds he held in offshore accounts, or with stock he owned in one of the companies. Murphy is also alleged to have told victims that the value of the shares of stock they would receive would increase dramatically; in some instances, anywhere from one dollar to sixty dollars per share, within a short period of time.

The indictment alleges these claims were false. Murphy is charged with spending victims' money on cash payments to himself and items for his own personal use, including the purchase of luxury vehicles such as Porsche and BMW automobiles, personal insurance and furniture. In most cases, victims did not receive any stock as promised by Murphy. When victims requested refunds, they were denied. Victims did not receive their principal, or the 10% interest as promised by Murphy.