NEWARK, NJ.- A Bloomfield man entered a plea of guilty before Chief U.S. District Judge Jose L. Linares in Newark federal court today to chargies of wire fraud, bank fraud, and tax evasion.
Frederick Murphy, 56, admitted embezzling over $220,000 in campaign funds while serving as the treasurer for a Newark mayoral campaign, U.S. Attorney Craig Carpenito announced.
According to documents court reports, Murphy served as treasure for the election campaign accounts associated with a Newark mayor candidate between January of 2014 and March of 2017. Murphy admitted that during that time, he embezzled over $220,000 from those accounts by writing phony checks in the names of various consultants and vendors for services that were never performed. Murphy also admitted under-reporting $102,954 in embezzled campaign funds on his personal income tax return for 2016.
The wire fraud charge carries a maximum potential penalty of 20 years in prison and a $250,000 fine. The bank fraud charge carries a maximum potential penalty of 30 years in prison and a $1 million fine. Murphy also faces a maximum potential penalty of five years in prison and a $250,000 fine on the tax evasion charge. Sentencing is currently scheduled for Sept. 11, 2018.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, and IRS–Criminal Investigation, under the direction of Acting Special Agent in Charge Bryant Jackson in Newark, with the investigation.
The government is represented by Assistant U.S. Attorneys Jacques S. Pierre and Jihee G. Suh of the U.S. Attorney’s Office Special Prosecutions Division.