Court filing
Indictment — United States v. Murphy (Dkt. 1, C.D. Ill.)
Summary
An indictment returned by a grand jury in United States v. Travis L. Murphy, No. 3:23-cr-30029, in the U.S. District Court for the Central District of Illinois, filed June 6, 2023 as Doc. 1. Counts 1-4 charge bank fraud under 18 U.S.C. § 1344. The indictment alleges that Murphy and others, operating as Murphy Farms, farmed owned and rented land, and that from on or about October 14, 2016 UMB Bank, N.A., an FDIC-insured bank, made seven loans totaling $8,418,000 to Murphy and others at Murphy Farms. It names Valley View Agri, LLC, Briggs Appraisal Associates and Bunge North America, Inc. among the relevant entities. A further count under Title 18, United States Code, Section 152(3) alleges a false statement involving property, including the Grain Complex, valued at less than $2,650,000.
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Filed June 6, 2023 in Travis L. Murphy; one of 1 filings from this case.
Record facts
| Court | U.S. District Court for the Central District of Illinois |
|---|---|
| Filed | 2023-06-06 |
Cite this document
“Indictment — United States v. Murphy (Dkt. 1, C.D. Ill.).”
U.S. District Court for the Central District of Illinois, No. 3:23-cr-30029, Doc. 1, filed 2023-06-06. Archived at Pandemic Darlings, https://pandemicdarlings.com/court-filings/full-docket-travis-l-murphy-ilcd-89937/2023-06-06-gov-uscourts-ilcd-89937-1-0-doc-1/
, SHA-256 337929be0f7b8ec35f72f1e621e8bd2ca8d7dc4c681c5636a89214c0c5c9b6e3.Full text
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3:23-cr-30029-CSB-EIL #1 Filed: 06/06/23 Page1lof6
FILED
IN THE UNITED STATES DISTRICT COURT JUN 06 2023
FOR THE CENTRAL DISTRICT OF ILLINOIS nee OF THE COURT
SS. DISTRICT COURT
SPRINGFIELD DIVISION CENTRAL DISTRICT OF ILLINOIS
UNITED STATES OF AMERICA, )
)
Plaintiff, ) 23-CR-300 Q4
)
V. ) 18 U.S.C. § 1344
) 180U.8.C. §152(3)
TRAVIS L. MURPHY, )
)
Defendant. )
INDICTMENT
The Grand Jury Charges:
Counts 1-4
(Bank Fraud)
At all times material:
1. TRAVIS L. MURPHY (MURPHY) was an individual who
resided within the Central District of Illinois.
2. MURPHY, and others, operating as Murphy Farms, engaged
in farming operations on property that they owned and rented from
various landlords in the Central District of Illinois.
3. UMB Bank, N.A. (UMB) was a financial institution having its
principal place of business in Kansas City, Missouri. UMB’s deposits
were insured by the Federal Deposit Insurance Corporation (FDIC).
3:23-cr-30029-CSB-EIL #1 Filed: 06/06/23 Page 2 of 6
4. Starting on or about October 14, 2016 and continuing to
approximately July of 201 7, UMB made or extended seven loans
totaling $8,418,000 to MURPHY and others at Murphy Farms.
5. Valley View Agri, LLC, doing business as Valley View Agri
Systems (Valley View), was a corporation engaged in the design and
construction of grain storage systems and related products.
6. Briggs Appraisal Associates (Briggs) was a commercial real
estate appraiser.
7. Bunge North America, Inc. (Bunge) was an agricultural
business that purchased crops from farmers to process and sell to
business consumers.
Scheme To Defraud
8. Beginning in or around September of 2016 and continuing
until at least May of 2018, in the Central District of Illinois and
elsewhere,
TRAVIS L. MURPHY,
i
the defendant, did knowingly engage in a scheme and artfice to
defraud UMB Bank N.A, and others to obtain property by means of
pmaterially false and fraudulent pretenses, representations, and
promises.
2
3:23-cr-30029-CSB-EIL #1 Filed: 06/06/23 Page 3of6
It was part of the scheme that:
9. MURPHY received a bid from Valley View to construct a grain
complex for $986,837. Murphy then caused the bid to be altered to
reflect a bid price of $2,639,500.
10. After the Valley View bid was altered, MURPHY caused the
altered bid to be presented to Briggs, knowing that Briggs was
appraising the grain complex and other property for purposes of
valuing collateral MURPHY wanted to use to obtain loans from UMB.
11. MURPHY and another executed balance sheets for 2015
and 2016 valuing the grain complex at $2,650,000. The balance
sheets were then provided to UMB.
12. To obtain loans from UMB, MURPHY was also required to
submit tax returns to UMB for tax years 2014 and 2015. The tax
returns MURPHY provided to UMB for 2014 and 2015 were materially
different from the tax returns he caused to be filed with the Internal
Revenue Service (IRS). Specifically, the 2014 returns MURPHY
submitted to UMB reflected a total income of $248,415, much higher
than the returns filed with the IRS, which stated a total income of
$48,415. The 2015 returns MURPHY submitted to UMB reflected a
total income of $216,094, much higher than the returns filed with
3
3:23-cr-30029-CSB-EIL #1 Filed: 06/06/23 Page 4of6
the IRS, which stated a total income of $46,755.13. On or about May
8, 2018, MURPHY and others entered into an agreement with UMB
in which they represented that they had 540,000 bushels of corn in
storage. In truth and fact, they only had 439,940.40 bushels in
storage at the time of the representation.
14. On March 29, 2018, MURPHY and another provided a
signed letter to UMB confirming “that no grain or livestock
comprising security for the UMB Bank has been sold since the date
of UMB’s last inspection, including the 2017 harvest.” That last
inspection was October 31, 2017. In truth and fact, MURPHY sold,
and caused to be sold, grain both before and after the October 31,
2017 inspection that served as security for the UMB loans. After
selling the grain, MURPHY failed to turn over the proceeds from the
grain sales to UMB.
Executions of the Scheme
15. On or about the dates below, and for each count, the
defendant,
TRAVIS L. MURPHY,
3:23-cr-30029-CSB-EIL #1 Filed: 06/06/23 Page 5 of 6
knowingly executed and attempted to execute a scheme and artifice
to defraud UMB, and to obtain UMB's money by materially false and
fraudulent pretenses, representations and promises:
Count Date Execution
1 10/14/2016 0 btained a loan from UMB in the
amount of $1,762,000.00
2 3/15/2017 Obtained a loan from UMB in the
amount of $1,865,000.00
3 7/26/2017 0btained a loan from UMB in the
amount of $2,500,000.00
4 11/6/2017-5/19/2018 Sold UMB's collateral, that being
corn, in the approximate total
amount of$454,155.71.
All in violation of Title 18, United States Code, Section 1344.
Count Five
(Bankruptcy Fraud-False Declaration)
16. The Grand Jury realleges and incorporates by reference
paragraphs 1-15 as fully set forth herein.
17. On or'about July 12, 2018, in the Central District of Illinois,
MURPHY did knowingly and fraudulently make a materially false
declaration under penalty of perjury in relation to a case under Title
11, that is In re: Travis Murphy, 18-71012 (Bankr. COIL), by listing
5
3:23-cr-30029-CSB-EIL #1 Filed: 06/06/23 Page 6 of 6
on his Schedule A/B Property, the value of the Grain Complex as
$2,650,000 based on a 2016 appraisal and on Schedule D: Creditors
Who Have Secured Claims Secured by Property, that he owed UMB
Bank more than $8.3 million, secured by approximately $5.75
million in property, including the Grain Complex, when MURPHY
knew the value of the Grain Complex was less than $2,650,000.
All in violation of Title 18, United States Code, Section 152(3).
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