On Thursday, it was announced that a former Bay Area resident had been arrested in Barnstable, Massachusetts on charges related to an investment fraud scheme. 44-year-old John Bryan Murphy was charged on November 30, 2017 with wire fraud and money laundering. The indictment alleges that between 2012 and 2017, Murphy solicited investments from several individuals on the premise that their money would be invested.
After being solicited, some victims gave Murphy money for the purpose of allowing him to invest the money on their behalf. Murphy is accused of using the money to support his personal lifestyle, to speculate on the stock market using an account in his name, and to repay other victims. The indictment claims that Murphy made payments to several victims with the hopes of lulling them into a false sense of security and to lead them to believe that the promises would be fulfilled.
The indictment claims that Murphy obtained more than $700,000 in fraudulently solicited funds. A detention hearing has been scheduled for Friday, December 8, 2017. The defendant remains innocent until proven guilty beyond a reasonable doubt in a court of law. Additional details can be found here.