A Gray man pleaded guilty in federal court Friday to making false entries in credit union records.
William J. Murphy, 75, was chief financial officer, a loan officer, bookkeeper and an employee of the Portland Police Department Federal Credit Union. That credit union’s deposits were federally insured.
Murphy had access to the credit union’s 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, according to a press release from the U.S. Attorney’s Office in Portland.
Between 2009 and 2013, Murphy filed false quarterly call reports overstating his credit union’s net worth in an effort to make it appear that it had sufficient capital, when he knew it didn’t.
Because of his false filings, on Dec. 1, 2014, the National Credit Union Administration facilitated the acquisition of the local credit union by a much larger federal credit union, according to the U.S. Attorney’s Office.
Murphy faces up to 30 years in prison, five years of supervised release and a $1 million fine in U.S. District Court in Portland. He will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
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