Gray Man Pleads Guilty to Making False Entries in Credit Union Records

PORTLAND, ME - October 02, 2015 - United States Attorney Thomas E. Delahanty II announced that WILLIAM J. MURPHY, 75, of Gray, Maine, pled guilty today in U.S. District Court to making false entries in credit union records.

According to court records, the defendant was the chief financial officer, a loan officer, the bookkeeper and an employee of the Portland Police Department Federal Credit Union (“PPDFCU”), a federal credit union whose deposits were federally insured. In that capacity, the defendant had access to PPDFCU bank accounts and was responsible for drafting and auditing the general ledger and preparing and submitting certified quarterly call reports to the National Credit Union Administration (“NCUA”). Between 2009 and 2013, the defendant filed false quarterly call reports in which he overstated the PPDFCU’s net worth to make it appear that PPDFCU was sufficiently capitalized, when in truth and in fact, as he well knew, the PPDFCU was not sufficiently capitalized. As a result, on December 1, 2014, the NCUA facilitated the acquisition of the PPDFCU by a much larger federal credit union.

Murphy faces up to 30 years in prison, five years of supervised release and a $1,000,000 fine. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.

The investigation was conducted by the Federal Bureau of Investigation.

U.S. Attorney’s Office
District of Maine

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