Moorestown financial adviser charged with stealing $900,000 from a client
A Moorestown-based financial adviser will spend the next seven years in state prison for allegedly stealing $900,000.00 from a client who trusted him with the money, believing it would be invested in mutual funds, according to the Burlington County Prosecutors Office.
Brian Murphy, 47, of Hainesport plead guilty to Second Degree Misapplication of Entrusted Property and Third Degree Failure To Pay State Income Taxes.
He was doing business under the name of Murphy Financial Advisors out of Moorestown when he started receiving money from the victim in March 2011 to be invested in mutual funds overseen by a specific investment firm.
Instead prosecutors say Murphy used the funds over the course of four-years for personal and business expenses including the fee to get membership at a country club, private school tuition, automobiles and attorney fees.
The victim became suspicious when Murphy failed on several occasions to provide statements showing the status of the investments.
When the victim approached Murphy about it, he gave the victim fictitious financial statements and a link to a bogus web page that he created to try and satisfy the client's demand for information.
The victim was told that no record existed of any funds deposited on the victim's behalf by Brian Murphy when the victim contacted the investment firm.
Under the terms of an agreement with the Prosecutor's Office, Murphy was given his sentence of seven years for the second degree charge and a concurrent three-year term for the third degree charge.
Murphy under-reported his taxable income in 2012, 2014 and 2015 and failed to file a New Jersey tax return in 2013 so he must file back state and federal income tax returns as part of the plea agreement.
He must also make restitution to the victim in the amount of $890,000.00 and permanently forfeit his financial licenses.
"This sentence reflects the seriousness of this substantial fraud," Prosecutor Scott Coffina said. "Let it serve as a reminder that we will vigorously prosecute financial advisers and anyone else who steals money entrusted to them by a client."
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