FINRA permanently barred convicted fraudster and former Morgan Stanley broker James William Murphy for misusing and converting funds belonging to a charitable foundation for which Murphy served as trustee. The report indicates the foundation was a brokerage customer of Morgan Stanley Smith Barney.
FINRA Case #2013038224901
According to the investigation, Murphy misused and converted over $100,000 from the charitable organization through electronic transfers and drafting checks in order to pay credit cards holding balances comprised, at least in part, of personal expenses. FINRA alleged Murphy's use of the foundation's brokerage account funds was effected without authorization or consent.
While FINRA banished Murphy from the securities industry, the State of Arizona in 2013 charged Murphy with multiple counts of felony theft and engaging in a fraudulent scheme by converting trust property at least once annually from 2005 through 2013. Murphy subsequently entered a guilty plea to some of the charges and paid court-ordered restitution to the charitable foundation of approximately $115,000.
If you have invested with James William Murphy or with any broker, agent or firm who you believe may have misappropriated, converted or diverted funds, please call The Law Offices of Jonathan W. Evans & Associates at (800) 699-1881 for investigation and consultation.