William R. Murray, 55, of Sacramento, California, pleaded guilty to charges last week he ran a Ponzi-type investment fraud scheme that bilked 52 clients out of as much as $13 million over an 8 year period. According to prosecutors, Murray promised clients that he would pay taxes and make investments on their behalf but instead used the money to support an extravagant lifestyle, including the purchase of real property, a classic car, a fleet of limousines, expensive jewelry and rugs, and fine wines. Murry charged the addresses for his clients so they would not receive delinquent tax notices. The scheme became a Ponzi scheme when he began using recent client funds to pay off earlier requirements. He is scheduled to be sentenced on the mail fraud and interference with tax administration charges on May 28.Read the story here and here.
Update (5/28/11): Murray was sentenced to 19 1/2 years in prison.
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