A 70-year-old retired colonel in the California Army National Guard pleaded guilty today in federal court to running a Ponzi scheme that defrauded at least 28 victims approximately $2.7 million, according to a U.S. Department of Justice announcement.
Timothy Melvin Murphy, a resident of Orange and at one point the commanding officer of the Guard's base in Los Alamitos, admitted to federal prosecutor Robert J. Keenan that he made false promises to dupe individuals into investing in his Capital Investors, Inc. of Orange County.
Murphy is scheduled to be sentenced by U.S. District Court Judge David O. Carter on June 15. He faces a maximum prison sentence of 20 years and a fine of more than $5 million. He also will likely have to pay restitution to his victims.
The crook's illegal scheming apparently was second nature. In May 2002, authorities reprimanded him in a public forum for misusing investors money. The rebuke obviously wasn't enough to scare him straight.
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