Former Information Technology Manager of Local Charity Pleads Guilty to Mail and Tax Fraud Charges
|U.S. Attorney’s Office November 25, 2009|
ST. LOUIS, MO—Paul Steven Murphy pleaded guilty to charges involving a false invoice scheme which defrauded his employer, the School Sisters of Notre Dame, of more than $510,000, and failing to report the money as income on his tax returns, Acting United States Attorney Michael W. Reap announced today.
Murphy was head of Information Technology (IT) for School Sisters of Notre Dame (SSND), a religious and charitable organization in the City of St. Louis. His responsibilities included ordering and installing computer hardware and software. Murphy also established his own business known as PC House. Beginning in October 2000 and continuing until December 2007, Murphy submitted invoices to SSND under the name PC House for goods and services which had not been rendered. These fraudulent invoices indicated on the face that Murphy approved their payment and would also indicate which accounting categories should be charged for the items billed. The indictment alleges that Murphy submitted PC House invoices totaling approximately $510,000 during the period 2000 through 2007. Murphy used this money for travel to Las Vegas, India and Hawaii, mortgage payments, jewelry and restaurants.
Additionally, Murphy failed to report on his federal income tax returns for the years 2003 through 2007 the money he received through the submission of the false and fraudulent PC House invoices to SSND. The total amount of additional tax due for the four years 2003 through 2007 is approximately $112,330.
PAUL STEVEN MURPHY, St. Louis, pleaded to one felony count mail of fraud and one felony count of filing false tax returns. He appeared before United States District Judge E. Richard Webber and sentencing has been set for February 17, 2010.
He now faces 25 years' imprisonment and a fine of $500,000.
"Prosecuting individuals who intentionally conceal income and evade taxes is a vital element in maintaining public confidence in our tax system" said Toni Weirauch, Special Agent in Charge of IRS-Criminal Investigation.
Reap commended the work performed on the case by the Internal Revenue Service-Criminal Investigation Division, the Federal Bureau of Investigation and Assistant United States Attorney Rosemary Meyers, who is handling the case for the U.S. Attorney’s Office.