Moorestown Financial Adviser Admits Stealing $900K From Client: Prosecutor

MOORESTOWN, NJ — A Moorestown-based financial adviser has admitted to stealing nearly $900,000 from a client who gave him money believing it would be invested in mutual funds, Burlington County Prosecutor Scott Coffina said on Thursday.

Brian Murphy, 46, of Hainesport, pleaded guilty to second-degree misapplication of entrusted property and third-degree failure to pay New Jersey State Income Taxes, Coffina said. He faces seven years in prison on the second degree charge and three years for the third degree charge, which would be served concurrently.
Murphy must also repay the victim $890,000 and permanently forfeit his financial licenses. Sentencing is scheduled for Jan. 10, 2018.

Murphy was doing business under the name of Murphy Financial Advisors out of Moorestown when he began receiving money from the victim in March of 2011 to be invested in mutual funds overseen by a specific investment firm, police said.

Over the next four years, the victim transferred a total of $890,000 to Murphy to be invested. However, the victim claims Murphy didn’t provide updates or statements about the status of the investment upon request.
When pressed for information, police allege Murphy provided fictitious financial statements and a link to a bogus web page that he created in an attempt to satisfy the client’s demand for information.

When the victim followed up with the investing firm, the victim was told no record existed of any money deposited on the victim’s behalf by Brian Murphy, police said. After he was confronted with this information by the victim, Murphy went to the victim’s home. There, he attempted to persuade the victim to sign a promissory note that indicated the money was actually a loan to Murphy, according to police.

The investigation also determined that Murphy under reported his taxable income in 2012, 2014 and 2015 and failed to file a New Jersey tax return in 2013, police said. Murphy must file back state and federal income tax returns as part of the plea agreement.

The attached image of Brian Murphy was provided by the Burlington County Prosecutor’s Office