FINRA

WITHOUT ADMITTING OR DENYING THE FINDINGS, MURPHY CONSENTED TO THE SANCTION AND TO THE ENTRY OF FINDINGS THAT HE MISUSED AND CONVERTED FUNDS OF HIS MEMBER FIRM'S BROKERAGE CUSTOMER, A CHARITABLE FOUNDATION FOR WHICH HE SERVED AS A TRUSTEE, FOR HIS OWN PERSONAL USE. THE FINDINGS STATED THAT THIS CONVERSION WAS ACCOMPLISHED THROUGH MURPHY'S USE OF CREDIT CARDS TO PAY NOT ONLY LEGITIMATE EXPENSES OF THE CHARITABLE FOUNDATION, BUT ALSO TO PAY HIS OWN PERSONAL EXPENSES THAT WERE NOT AUTHORIZED BY THE FOUNDATION. THE FINDINGS ALSO STATED THAT MURPHY, WITHOUT AUTHORIZATION, INITIATED ELECTRONIC TRANSFERS FROM AND DRAFTED CHECKS ON THE FOUNDATION'S FIRM BROKERAGE ACCOUNT TO PAY THE CREDIT CARD ACCOUNTS, WHICH INCLUDED THE PERSONAL EXPENSES CHARGED TO THE CARDS. THE FINDINGS ALSO INCLUDED THAT THE STATE OF ARIZONA CHARGED MURPHY WITH MULTIPLE RELATED COUNTS OF FELONY THEFT AND ENGAGING IN A FRAUDULENT SCHEME BY CONVERTING TRUST PROPERTY. FINRA FOUND THAT MURPHY PLED GUILTY TO A SUBSET OF THE CHARGES AND HAS PAID COURT-ORDERED RESTITUTION TO THE CHARITABLE FOUNDATION. FINRA ALSO FOUND THAT BY USING THE FOUNDATION'S BROKERAGE ACCOUNT FUNDS WITHOUT AUTHORIZATION TO PAY FOR PERSONAL EXPENSES INCURRED ON CREDIT CARDS, MURPHY CONVERTED AND IMPROPERLY USED CUSTOMER FUNDS.

Acceptance, Waiver & Consent(AWC)

Bar (Permanent)

All Capacities

4/22/2014