Advertisement
YOU ARE HERE: LAT HomeCollections

NEWS IN BRIEF: A summary of developments across Los
Angeles County | Official Business / Courts and Government

Investment Guru Pleads Guilty in Fraud Case

July 28, 1998

A Marina del Rey businessman who touted himself in books, seminars and television appearances as the next Donald Trump pleaded guilty in federal court Monday to bilking mostly elderly investors out of at least $10 million.

Stephen James Murphy entered a guilty plea to five counts of mail fraud and one count of making false statements to a financial institution.

Murphy, who was president of American Capital Investments Inc., wrote numerous books about self-motivation and real estate investment, including one titled "One Up on Trump."

Through his company, prosecutors charged, he solicited investors to put up capital to buy commercial office buildings, falsely promising them substantial profits in as little as 30 days. He also sold interests in buildings he never owned. In return for his guilty plea and a promise to make restitution, prosecutors agreed to recommend a sentence of five years in custody. Murphy is to be sentenced Nov. 16 by U.S. District Judge William J. Rea, who is not bound by the plea agreement and could impose a prison term of up to 55 years.

Advertisement
Los Angeles Times Articles
|
|
|