Former BofA Exec Indicted For Fraud

[ProSense]

Former BofA Exec Indicted For Fraud

An indictment filed yesterday in federal court in Charlotte, North Carolina charged the former head of Bank of America’s municipal derivatives desk, Phillip Murphy, with conspiracy to defraud the U.S, wire fraud, and conspiracy to make false entries in bank records. From Bloomberg:

Bank of America, which self-reported the illegal activity, has been cooperating for more than four years with Justice Department prosecutors who say that bankers paid kickbacks to CDR Financial Products to rig bids on investment contracts sold to local governments. Municipalities bought the contracts with money raised through bond sales, which allowed them to earn a return until the funds were needed for schools, roads, and other public works.

http://livewire.talkingpointsmemo.com/entries/former-bofa-exec-indicted-for-fraud

Former Financial Services Executive Indicted for His Participation in a Far-Reaching Conspiracy and Scheme to Defraud Involving Investment Contracts for the Proceeds of Municipal Bonds
http://www.stopfraud.gov/iso/opa/stopfraud/2012/12-at-895.html

[2pooped2pop]

1. may he sing sing sing. n/t

[ProSense]

3. Yes, and

I'm surprised this wasn't in LBN.

[unc70]

23. Think Murphy has been under investigation for years

Bloomberg ran a piece on him several years ago. I believe this Phillip Murphy was at BofA from 1998 to 2002. It's confusing because another one from Goldman Sachs is an ambassador.

I believe he was fired by BofA ten years ago. Not absolutely certain. I'll dig around tomorrow.

[2pooped2pop]

25. so he may not have info that is recent enough to act on anyway

Too bad.

[unc70]

28. Already convictions in related cases

If I understand correctly, there have been convictions of others involved in this particular scheme.

I would assume that DOJ did not let the clock run out on this. He left BofA about 10 years ago.

[MineralMan]

2. It looks like they are going after bankers.

In fact, there have been several stories like this one. Maybe those who are saying that the feds never go after the bankers are incorrect.

[Fumesucker]

4. ...

http://economistsview.typepad.com/

[ProSense]

6. Actually,

not only does the chart you posted shows that prosecutions started dropping after the repeal of Glass-Steagall, it also shows prosecutions, not convictions. It's also not conclusive because it doesn't state what specifically it includes and appears to be related to bank fraud. Here's the reference:

This category can refer to crimes committed both within and against banks. Defendants include bank executives who mislead regulators, mortgage brokers who falsify loan documents, and consumers who write bad checks. (Here are some recent cases of bank fraud prosecutions.)

Goldman Sachs is not a bank. Still, even if it is bank fraud, it does offer more evidence of Bush's "abysmal" record, as these prosecutions dropped significantly during his Presidency.

The following is from the Financial Institution Fraud and Failure Reports for each fiscal year.



http://www.fbi.gov/stats-services/publications/fiff_00-01




http://www.fbi.gov/stats-services/publications/fiff-2002

(b): Types of Subjects Convicted in FIF Cases During FY 2007*
SUBJECT TYPE NUMBER OF SUBJECTS
Legal Alien 8
Illegal Alien 20
All Other Subjects 1,038
Bank Officer 88
Bank Employee 179
International or National Union Officer 1
President 1
Business Manager 2
Office Manager 2
Financial Secretary 1
Federal Employee - GS 12 & Below 1
State - All Others 1
Local Law Enforcement Officer 1
City Councilman 1
Possible Terrorist Member or Sympathizer 1
Company or Corporation 7
Local - All Others 2
Total 1,354

http://www.fbi.gov/stats-services/publications/fiff_06-07/fiff_06-07



http://www.fbi.gov/stats-services/publications/fiff_06-07/fiff_06-07

Given yhe above charts and the break out for 2007, it appears that most of the convictions were not bank executives. In fact, the majority were bank "outsiders," likely meaning more bad-check writers and document falsifiers.

Also, bank fraud is separate from corporate fraud, mortgage fraud, and securities and commodities fraud.

The following is from the Financial Crimes Report to the Public for each fiscal year:
(Note: The 2005 report does not break out securities and commodities fraud. The 2010-2011 report is the only one that breaks out financial institution fraud. All reports show corporate fraud and mortgage fraud.)

Through Fiscal Year 2005, cases pursued by the FBI resulted in 497 indictments and 317 convictions of corporate criminals. Numerous cases are pending plea agreements and trials. From July 1, 2002 through March 31, 2005, accomplishments regarding Corporate Fraud cases were as follows: $2.2 billion in Restitutions, $34.6 million in Recoveries, $79.1 million in Fines, and $27.9 million in Seizures. As Corporate Fraud statistical accomplishments were not provided before July 1, 2002, the following statistical accomplishments are reflective of this time frame through Second Quarter, Fiscal Year 2005.

http://www.fbi.gov/stats-services/publications/fcs_report2005/fcs_2005#CORPORATE

http://www.fbi.gov/stats-services/publications/fcs_report2005/fcs_2005#MORTGAGE

_________

During FY 2006, the FBI investigated 490 Corporate Fraud cases resulting in 171 indictments and 124 convictions of corporate criminals. Numerous cases are pending plea agreements and trials. The following notable statistical accomplishments are reflective in FY 2006 for Corporate Fraud: $1.2 billion in Restitutions, $41.5 million in Recoveries, $14.2 million in Fines, and $62.6 million in Seizures. The chart below is reflective of the number of pending cases from FY 2002 through FY 2006.

http://www.fbi.gov/stats-services/publications/fcs_report2006

During FY 2006, the FBI investigated 1165 cases of Securities and Commodities fraud and recorded 302 indictments and 164 convictions. Many of these Securities Fraud cases are pending plea agreements or trials. The following notable statistical accomplishments are reflective in FY 2006 for Securities and Commodities Fraud: $1.9 billion in Restitutions, $20.6 million in Recoveries, $80.7 million in Fines, and $62.7 million in Seizures. The chart below is reflective of the number of pending cases from FY 2002 through FY 2006.

http://www.fbi.gov/stats-services/publications/fcs_report2006/financial-crimes-report-to-the-public-fiscal-year-2006#Securities

Through FY 2006, 818 cases investigated by the FBI resulted in 263 indictments and 204 convictions of Mortgage Fraud criminals. The following notable statistical accomplishments are reflective in FY 2006 for Mortgage Fraud: $388.9 million in Restitutions, $1.4 million in Recoveries, and $231 million in Fines. The chart below is reflective of the number of pending cases from FY 2003 through FY 2006.

http://www.fbi.gov/stats-services/publications/fcs_report2006/financial-crimes-report-to-the-public-fiscal-year-2006#Mortgage

___________

Through FY 2007, cases pursued by the FBI resulted in 183 indictments and 173 convictions of corporate criminals. Numerous cases are pending plea agreements and trials. During Fiscal Year 2007, the FBI secured $12.6 billion in restitution orders and $38.6 million in fines from corporate criminals. The chart below reflects corporate fraud pending cases from Fiscal Year 2003 through Fiscal Year 2007 as follows: Fiscal Year 2003 - 279 cases; Fiscal Year 2004 - 332; Fiscal Year 2005 - 423; Fiscal Year 2006 - 486; and Fiscal Year 2008 - 529 cases.

http://www.fbi.gov/stats-services/publications/fcs_report2007/fcr_2007#corporate

As of the end of Fiscal Year 2007, the FBI was investigating 1,217 cases of securities and commodities fraud and had already recorded 320 indictments and 289 convictions. Additional notable accomplishments in Fiscal Year 2007 include: $1.7 billion in restitution orders; $24 million in recoveries; and $202.7 million in fines. The chart below reflects securities and commodities fraud pending cases from Fiscal Year 2003 through Fiscal Year 2007 as follows: Fiscal Year 2003 - 937 cases; Fiscal Year 2004 - 987cases; Fiscal Year 2005 - 1,139 cases; Fiscal Year 2006 - 1,165 cases; and Fiscal Year 2007 - 1,217 cases.

http://www.fbi.gov/stats-services/publications/fcs_report2007/fcr_2007#securities

Through Fiscal Year 2007, 1,204 cases resulted in 321 indictments and 260 convictions of mortgage fraud criminals. The following notable statistical accomplishments are reflective in Fiscal Year 2007 for mortgage fraud: $595.9 million in restitutions, $21.8 million in recoveries, and $1.7 in fines. The chart below reflects mortgage fraud pending cases from Fiscal Year 2003 through Fiscal Year 2007 as follows: Fiscal Year 2003 - 436 cases; Fiscal Year 2004 - 534 cases; Fiscal Year 2005 - 721 cases; Fiscal Year 2006 - 818 cases; and Fiscal Year 2007 - 1,204 cases.

http://www.fbi.gov/stats-services/publications/fcs_report2007/fcr_2007#mortgage

______________

Through FY 2008, cases pursued by the FBI resulted in 158 indictments and 132 convictions of corporate criminals. Numerous cases are pending plea agreements and trials. During FY 2008, the FBI secured $8.1 billion in restitution orders and $199 million in fines from corporate criminals. The chart below reflects corporate fraud pending cases from FY 2004 through FY 2008 as follows: FY 2004—332 cases; FY 2005—423; FY 2006—486; FY 2007—529; and FY 2008—545 cases.

http://www.fbi.gov/stats-services/publications/fcs_report2008/financial-crimes-report-to-the-public#corporate

As of the end of FY 2008, the FBI was investigating 1,210 cases of securities and commodities fraud and had already recorded 357 indictments and 296 convictions. Additional notable accomplishments in FY 2008 include: $3.1 billion in restitution orders; $43.6 million in recoveries; $151.4 million in fines and $84.2 million in seizures. The chart below reflects securities and commodities fraud pending cases from FY 2004 through FY 2008 as follows: FY 2004—987cases; FY 2005—1,139 cases; FY 2006—1,165 cases; FY 2007—1,217 cases and FY 2008—1,210 cases.

http://www.fbi.gov/stats-services/publications/fcs_report2008/financial-crimes-report-to-the-public#securities

Through FY 2008, 1,644 cases resulted in 560 indictments and 338 convictions of mortgage fraud criminals. The following notable statistical accomplishments are reflective in FY 2008 for mortgage fraud: $1.1 billion in restitutions, $3.3 million in recoveries, $3.1 million in fines, and 68 seizures valued at $476.7 million. The chart below reflects mortgage fraud pending cases from FY 2004 through FY 2008 as follows: FY 2004—534 cases; FY 2005—721 cases; FY 2006—818 cases; FY 2007—1,204 cases; and FY 2008—1,644 cases.

http://www.fbi.gov/stats-services/publications/fcs_report2008/financial-crimes-report-to-the-public#mortgage

____________

Through FY 2009, cases pursued by the FBI resulted in 153 indictments/informations and 156 convictions of corporate criminals. Numerous cases are pending plea agreements and trials. During FY 2009, the FBI secured $6.1 billion in restitution orders and $5.4 million in fines from corporate criminals. The chart below reflects corporate fraud pending cases from FY 2005 through FY 2009 as follows: FY 2005— 423 cases; FY 2006—486 cases; FY 2007—529 cases; FY 2008—545 cases; and FY 2009—592 cases.

http://www.fbi.gov/stats-services/publications/financial-crimes-report-2009/financial-crimes-report-2009

As of the end of FY 2009, the FBI was investigating 1,510 cases of securities and commodities fraud and had already recorded 412 indictments/informations and 306 convictions. Additional notable accomplishments in FY 2009 include: $8.1 billion in restitution orders; $63.4 million in recoveries; $12.8 million in fines; and $126 million in seizures. The chart below reflects securities and commodities fraud pending cases from FY 2005 through FY 2009 as follows: FY 2005—1,139 cases; FY 2006—1,165 cases; FY 2007—1,217 cases; FY 2008—1,210 cases; and FY 2009— 1,510 cases.

http://www.fbi.gov/stats-services/publications/financial-crimes-report-2009/financial-crimes-report-2009#securities

Through FY 2009, 2,794 cases resulted in 822 indictments and 494 convictions of mortgage fraud criminals. The following notable statistical accomplishments are reflective in FY 2009 for mortgage fraud: $2.5 billion in restitutions, $7.5 million in recoveries, and $58.4 million in fines; 128 seizures valued at $5.06 million and 226 criminal indicted assets valued at $510.1 million. The chart below reflects mortgage fraud pending cases from FY 2005 through FY 2009 as follows: FY 2005—721 cases; FY 2006—818 cases; FY 2007—1,204 cases; FY 2008—1,644 cases; and FY 2009—2,794 cases.

http://www.fbi.gov/stats-services/publications/financial-crimes-report-2009/financial-crimes-report-2009#mortgage

_____________

During FY 2011, cases pursued by the FBI resulted in 242 indictments/informations and 241 convictions of corporate criminals. Numerous cases are pending plea agreements and trials. During FY 2011, the FBI secured $2.4 billion in restitution orders and $16.1 million in fines from corporate criminals. The chart below reflects corporate fraud pending cases from FY 2007 through FY 2011.

http://www.fbi.gov/stats-services/publications/financial-crimes-report-2010-2011/financial-crimes-report-2010-2011#Corporate

As of the end of FY 2011, the FBI was investigating 1,846 cases of securities and commodities fraud and had recorded 520 indictments/informations and 394 convictions against this criminal threat. Additional notable accomplishments in FY 2011 include: $8.8 billion in restitution orders; $36 million in recoveries; $113 million in fines; and $751 million in forfeitures. The chart below reflects securities and commodities fraud pending cases from FY 2007 through FY 2011.

http://www.fbi.gov/stats-services/publications/financial-crimes-report-2010-2011/financial-crimes-report-2010-2011#Securities

During FY 2011, cases pursued by the FBI resulted in 521 informations and indictments, and 429 convictions of FIF criminals. The following are notable statistical accomplishments in FY 2011 for FIF: $1.38 billion in restitutions; $116.3 million in fines; and seizures valued at $15.7 million. The chart below reflects pending FIF cases from FY 2007 through FY 2011.

http://www.fbi.gov/stats-services/publications/financial-crimes-report-2010-2011/financial-crimes-report-2010-2011#Financial-ins

Through FY 2011, FBI investigations resulted in 1,223 informations and indictments and 1,082 convictions of mortgage fraud criminals. The following notable statistical accomplishments are reflective in FY 2011 for mortgage fraud: $1.38 billion in restitutions; $116.3 million in fines; seizures valued at $15.7 million; and $7.33 million in forfeitures.

http://www.fbi.gov/stats-services/publications/financial-crimes-report-2010-2011/financial-crimes-report-2010-2011#Mortgage

Pending cases are important because they can still result in convictions.


President Obama’s Financial Fraud Enforcement Task Force STRIKES AGAIN! $200 Million Fraud
http://www.democraticunderground.com/1002844790

[JDPriestly]

9. I wonder how the charts would look if you included the 1980s and the S&L crisis.

Also, I think we need to bring back Glass Steagall or something much more like it than the very mild reforms we got recently. We need to tax the gains from the speed-trading at regular income tax rates. That would slow the markets to a pace that would permit small investors to keep up with what is going on and gain confidence in those markets. Right now, the companies that do the computer fast-trading are just stealing from the fools who think that they are trading and buying into companies on their home computers.

[Tarheel_Dem]

17. I! LOVE! YOU! and your "blue links".

You're a treasure.

[bigtree]

33. nice

bookmarked

[BlueToTheBone]

5. I'm thinking that this is why

the pukes went after Holder...to stop him from doing his job.

[jillan]

7. This former BofA employee wants to see more, more, more!!

Horrible company.

[valerief]

8. Looks like he might perform multiple self-inflicted stab wounds sometime soon.

Or shoot himself twice in the head.

[2pooped2pop]

24. surely you mean

in the back of the head with a shotgun, twice.

Can't remember who that was but it happened and they claimed it a suicide.

[valerief]

26. I think there was a recent one, but I can't find it. nt

[FreakinDJ]

27. Jack Webb, reporter - Who broke the CIA - Contra Cocaine story

of course him implicating "Poppy Bush and his apparent suicide taking place soon as Bush Jr took office was purely circumstantial"

[2pooped2pop]

35. thank you ,and love your dancing

banana? condom? I better take a closer look, lol.

[Scurrilous]

10. K & R

[HiPointDem]

11. kr

[BumRushDaShow]

12. Wait. This must be from The Onion

because DU told me that the "third way" President won't ever go after the banksters. Nope no siree.

[Spitfire of ATJ]

13. Okay, so BofA went to the Justice Dept because they didn't like paying kickbacks

to some little place called CDR Financial Products.

Am I supposed to get excited about seeing a big bank use our Justice Department as a club on a second rate place?

[ProSense]

14. I don't

"Okay, so BofA went to the Justice Dept because they didn't like paying kickbacks to some little place called CDR Financial Products.

Am I supposed to get excited about seeing a big bank use our Justice Department as a club on a second rate place? "

...know what excites you, but I'm excited that a BoA executive was indicted. I also really don't give a shit about the bid-rigging "little place."

[Spitfire of ATJ]

16. Okay, there's that.

But it sounds like they tossed one of their own to the wolves.

[girl gone mad]

18. Then you should be grateful to the Bush justice department, I guess.

"Bank of America, which self-reported the illegal activity, has been cooperating for more than four years with Justice Department prosecutors"

[ProSense]

19. Yes,

Then you should be grateful to the Bush justice department, I guess.

"Bank of America, which self-reported the illegal activity, has been cooperating for more than four years with Justice Department prosecutors"

...I'm "grateful" that BoA went to the Bush Justice department so that the Obama Justice department could indict one of its executives.

Feel better?

[sabrina 1]

21. I was going to ask the question, 'why did it take four years' to finally indict someone

in this case, not that it's not a good thing.

[DCKit]

22. No shit. Four years, and they don't know what to do with him.

"Prosecution" is Greek to this DOJ. Not a clue.

[ProSense]

31. They have

"No shit. Four years, and they don't know what to do with him."

...have some idea:

<...>

Murphy is charged with two counts of conspiracy and one count of wire fraud. The fraud conspiracy with which Murphy is charged carries a maximum penalty of five years in prison and a $250,000 fine. The wire fraud charge carries a maximum penalty of 30 years in prison and a $1 million fine. The false bank records conspiracy carries a maximum penalty of five years in prison and a $250,000 fine. The maximum fines for each of these offenses may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine.

http://www.stopfraud.gov/iso/opa/stopfraud/2012/12-at-895.html

[woo me with science]

34. It's not a matter not of having a clue.

It's a matter of taking sides.

Holder, Geithner, coordinated assaults on Occupy, settlements for corrupt banks...

They have not taken ours.






The denial needs to stop.
http://www.democraticunderground.com/?com=view_post&forum=1014&pid=146626

[ProSense]

37. Excuse me

WTF does that stupid image have to do with Obama and the point of the OP?

"The denial needs to stop."

The silliness needs to stop.

[woo me with science]

39. No.

We have excused this nonsense long enough.

[ProSense]

40. OK carry on with the silliness.

[woo me with science]

42. Yeah, it's "silly."

Fed-up cop says "enough" - tired of seeing starving, poor, struggling elderly
http://www.democraticunderground.com/1002986127

Homeless US Schoolchildren top one million, leaving advocates "horrified."
http://www.democraticunderground.com/101633605

[ProSense]

44. So

Fed-up cop says "enough" - tired of seeing starving, poor, struggling elderly
http://www.democraticunderground.com/1002986127

Homeless US Schoolchildren top one million, leaving advocates "horrified."
http://www.democraticunderground.com/101633605

...this is Obama's fault?

What the fuck does this have to do with the OP and prosecuting fraud?

Your point isn't silly, it's absurd.

[woo me with science]

46. "What the fuck does this have to do with Obama?"

What the fuck, indeed.


[font size=2]It's not a matter of not having a clue. It's a matter of taking sides. Holder, Geithner, coordinated assaults on Occupy, settlements for corrupt banks...
They have not taken ours.[/font size]



The denial needs to stop.
http://www.democraticunderground.com/?com=view_post&forum=1014&pid=146626

[ProSense]

47. Kick,

silly!

[woo me with science]

29. +100000 This is a joke.

Meanwhile,

13 TRILLION dollars hidden by the world's elite.
http://www.democraticunderground.com/?com=view_post&forum=1014&pid=173038

...and we are supposed to take THIS story as a sign of seriousness?


The denial needs to stop.
http://www.democraticunderground.com/?com=view_post&forum=1014&pid=146626

[ProSense]

30. Here's

"+100000 This is a joke. "

...some more funny stuff:

Former Chief Investment Officer of Stanford Financial Group Pleads Guilty to Obstruction of Justice
http://www.stopfraud.gov/iso/opa/stopfraud/2012/12-crm-785.html

Former Corporate Chairman of Consulting Firm and Board Director Rajat Gupta Found Guilty of Insider Trading in Manhattan Federal Court
http://www.stopfraud.gov/iso/opa/stopfraud/NYS-120615.html

Hedge Fund Founder Raj Rajaratnam Sentenced in Manhattan Federal Court to 11 Years in Prison for Insider Trading Crimes
http://www.stopfraud.gov/news/news-10132011.html

CEO and Head Trader of Bankrupt Sentinel Management Indicted in Chicago in Alleged $500 Million Fraud Scheme Prior to Firm’s 2007 Collapse
http://www.stopfraud.gov/iso/opa/stopfraud/ILN-120601.html

Yahoo! Executive and California Hedge Fund Portfolio Manager Plead Guilty in New York for Insider Trading
http://www.stopfraud.gov/iso/opa/stopfraud/NYS-120521.html

Three Former Financial Services Executives Convicted for Roles in Conspiracies Involving Investment Contracts for the Proceeds of Municipal Bonds
http://www.stopfraud.gov/iso/opa/stopfraud/2012/12-at-620.html

Former Chairman of Taylor, Bean & Whitaker Sentenced to 30 Years in Prison and Ordered to Forfeit $38.5 Million
http://www.stopfraud.gov/news/news-06302011-2.html
http://www.stopfraud.gov/iso/opa/stopfraud/2012/12-crm-342.html

Former Chief Financial Officer of Taylor, Bean & Whitaker Pleads Guilty to Fraud Scheme
http://www.stopfraud.gov/iso/opa/stopfraud/2012/12-crm-342.html

Seattle Investment Fund Founder Sentenced to 18 Years in Prison for Ponzi Scheme and Bankruptcy Fraud
http://www.stopfraud.gov/iso/opa/stopfraud/WAW-120210.html

Former Hedge Fund Managing Director Sentenced to 20 Years for Defrauding 900 Investors in $294 Million Scheme
http://www.stopfraud.gov/iso/opa/stopfraud/ILN-111117.html

http://www.stopfraud.gov/news-index.html

[woo me with science]

32. You're very good at filler.

Give me a fucking break. We are talking about TRILLIONS and the collapse of our economy.

Manhattan Federal Court?

US District Court in Chicago?

38.5 million?

This is very much like "The List." Lots of small potatoes trying to obscure the fact that the big outrages go utterly unpunished.

No, not only unpunished: PROTECTED:

Obama sides with banks (corrupt loans, foreclosures); pressures NY Atty. General for settlement.
http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=439&topic_id=1795232&mesg_id=1795232

[ProSense]

36. And

"Give me a fucking break. We are talking about TRILLIONS and the collapse of our economy. "

...you're good at making no point. All you have are lame attempts to try to dismiss anything.

"This is very much like 'The List.' Lots of small potatoes trying to obscure the fact that the big outrages go utterly unpunished. "

I could post the entire list of everyone convicted and you would still throw out your red herrings.

[woo me with science]

38. ...

Third Way messaging is inherently hopeless, because it burdens its messengers with an impossible task: trying to convince people that what they have seen, heard, and experienced with their own eyes and ears isn't happening.


[font size=1]13 TRILLION dollars hidden by the world's elite.
http://www.democraticunderground.com/?com=view_post&forum=1014&pid=173038

...and we are supposed to take THIS story as a sign of seriousness?


The denial needs to stop.
http://www.democraticunderground.com/?com=view_post&forum=1014&pid=146626[/font size]

[ProSense]

41. Wait

"Third Way messaging is inherently hopeless..."

...another lame red herring?

If you think that means anything to me maybe you're the one in denial.

Fuck Third Way.

[woo me with science]

43. ...

http://www.democraticunderground.com/1002850016

[ProSense]

45. Are you desperate? n/t

[Egalitarian Thug]

15. K&R. Hopefully the first of many. n/t

[ck4829]

20. K&R