United States of America v. Travis L. Murphy

Springfield, Illinois criminal defense lawyer represented Defendant charged with bank fraud.



Travis Murphy, age 40, of Chandlerville, Illinois, through the business Murphy Farms, devised a scheme to defraud a FDIC insured bank and obtain its funds by making materially false and fraudulent pretenses, representations, and promises. According to the indictment, Murphy obtained loans totaling over $8.4 million after submitting documents that misrepresented his property values, crop holdings, and income. After obtaining the loans and defaulting on payment, Murphy later sold collateral, being crops, outside of the agreement. Further, Murphy reiterated the inflated value of his property on his petition when he filed for bankruptcy.



Murphy has been issued a summons to appear before the United States Magistrate Judge in Springfield, but the exact date for his appearance has not yet been finalized.



If convicted, Murphy faces a penalty of up to thirty years in prison and five years of supervised release on each bank fraud count and a penalty of up to five years in prison and three years of supervised release on the bankruptcy fraud count. The charges also carry maximum fines of up to $1,000,000 for each count of bank fraud and up to $250,000 for the bankruptcy fraud count.



The charges are the result of an investigation by the Federal Bureau of Investigation, Springfield Field Office. The bankruptcy fraud charge was referred for criminal prosecution by the Office of the United States Bankruptcy Trustee for Region 10. The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, Indiana, with additional offices in South Bend, Indiana, and Peoria, Illinois. Assistant U.S. Attorney Sierra Senor-Moore is representing the government in the prosecution.



Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.



18:1344A.F--BANK FRAUD--Beginning in or around September of 2016 and continuing until at least May of 2018, in the Central District of Illinois and elsewhere, the defendant, did knowingly engage in a scheme and artifice to defraud UMB Bank N.A, and others to obtain property by means of materially false and fraudulent pretenses, representations, and promises. Count I, on 10/14/2016, the Defendant obtained a loan from UMB in the amount of $1,762,000.00, all in violation of Title 18, United States Code, Section 1344.

(1)

18:1344A.F--BANK FRAUD--Beginning in or around September of 2016 and continuing until at least May of 2018, in the Central District of Illinois and elsewhere, the defendant, did knowingly engage in a scheme and artifice to defraud UMB Bank N.A, and others to obtain property by means of materially false and fraudulent pretenses, representations, and promises. Count II, on 3/15/2017, Obtained a loan from UMB in the amount of $1,865,000.00, all in violation of Title 18, United States Code, Section 1344.

(2)

18:1344A.F--BANK FRAUD--Beginning in or around September of 2016 and continuing until at least May of 2018, in the Central District of Illinois and elsewhere, the defendant, did knowingly engage in a scheme and artifice to defraud UMB Bank N.A, and others to obtain property by means of materially false and fraudulent pretenses, representations, and promises. Count III, on 7/26/2017, The Defendant obtained a loan from UMB in the amount of $2,500,000.00, all in violation of Title 18, United States Code, Section 1344.

(3)

18:1344A.F--BANK FRAUD--Beginning in or around September of 2016 and continuing until at least May of 2018, in the Central District of Illinois and elsewhere, the defendant, did knowingly engage in a scheme and artifice to defraud UMB Bank N.A, and others to obtain property by means of materially false and fraudulent pretenses, representations, and promises. Count IV, on 11/6/2017 through 5/19/2018, The Defendant sold UMB's collateral, that being corn, in the approximate total amount of$454,155.71, all in violation of Title 18, United States Code, Section 1344.

(4)

18:152.F--CONCEAL ASSETS, FALSE OATH AND CLAIMS BRIBERY--On or about July 12, 2018, in the Central District of Illinois, The Defendant did knowingly and fraudulently make a materially false declaration under penalty of perjury in relation to a case under Title 11, all in violation of Title 18, United States Code, Section 152(3).

(5)

06/07/2023 5 TEXT ORDER entered by US Magistrate Judge Karen McNaught on 6/7/2023: Initial Appearance and Arraignment set for defendant Travis Murphy on 6/16/2023 at 10:30 a.m. via video before Magistrate Judge Karen L. McNaught. Defendant and all counsel to appear via video. Video conference instructions are attached. (HS) (Entered: 06/07/2023)

06/07/2023 TEXT ORDER OF RECUSAL entered by Judge Myerscough on 06/07/2023: Judge Sue E. Myerscough disqualifies and recuses herself from participation in this matter pursuant to 28 U.S.C. 455(a). This matter is referred to Chief Judge Sara Darrow for reassignment. (DM) (Entered: 06/07/2023)

06/07/2023 TEXT ORDER OF REASSIGNMENT entered by Chief Judge Sara Darrow on 6/7/2023. This case and the corresponding hearings are reassigned to Chief Judge Sara Darrow pending reassignment. (DM) (Entered: 06/07/2023)