Former Bank CEO Admits Changing Loan Deliquency Dates to Defraud Investors

December 22, 2013

John Murphy, 63, Nesconset, New York, the former chief executive officer of Oak Rock Financial LLC, pled guilty to bank fraud before United States Magistrate Judge Gary R. Brown at the United States courthouse in Central Islip, New York.

The charge arose out of Murphy’s scheme to defraud various financial institutions, including Israel Discount Bank (IDB), the primary lender to Oak Rock. The losses to these financial institutions and Oak Rock investors are in excess of $100 million. When sentenced by United States District Judge Leonard D. Wexler, the defendant faces a maximum of 30 years’ imprisonment.

Oak Rock is a financial lending company located in Suffolk County, New York, that is in the business of securing lines of credit for businesses throughout the United States. Until April 2013, Murphy was the chief executive officer and president of Oak Rock. During his guilty plea, Murphy admitted to lying to IDB, other financial institutions, and Oak Rock investors regarding the accounts receivable for Oak Rock. Specifically, Murphy admitted, since January 2009, he had been committing fraud by changing delinquency dates to keep collateral and loans current; booking fictitious payments, thereby creating fictitious accounts receivable; and re-aging delinquent accounts receivable by copying data from timely paid accounts so that the loans appeared to have been stable. By relying on Murphy’s misrepresentations IDB, other financial institutions, and Oak Rock investors sustained losses in excess of $100 million.

The conviction was announced by Loretta E. Lynch, United States Attorney for the Eastern District of New York, and George Venizelos, Assistant Director in Charge, Federal Bureau of Investigation, New York Field Office (FBI).

“Murphy abused his position as CEO and defrauded banks out of millions of dollars by lying about his company’s financial health,” stated United States Attorney Lynch. “Today’s conviction should act as warning to executives: if you lie to lenders and investors, you will be investigated and prosecuted to the full extent of the law.” Ms. Lynch expressed her grateful appreciation to the New York State Department of Financial Services for its assistance in this investigation.

“Mr. Murphy, instead of being a steward of Oak Rock Financial, spent his time cooking the books. Let this serve as a reminder to executives everywhere that honesty and integrity are more important than the bottom line,” stated FBI Assistant Director in Charge Venizelos.

The government’s case is being prosecuted by Assistant United States Attorney Michael P. Canty.

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About ror1774

This Blog is for modern day Patriots who want to Reclaim Our Republic and put it on the right path with a foundation of our Constitution and our Creator God.
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5 Responses to Former Bank CEO Admits Changing Loan Deliquency Dates to Defraud Investors

  1. Richard M Nixon (Deceased) says:

    Reblogged this on Dead Citizen's Rights Society.


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