Agents with the Florida Department of Law Enforcement (FDLE) Lakeland Office and the Federal Bureau of Investigation (FBI) today arrested Richard Crumpton Murphy, 71, of Lakeland, Fla., for defrauding investors of more than $338,000.

The investigation began in December 2008 when investigators received allegations that Murphy, owner of EMedicalid Group, Inc. and Triangle Utility Company, was selling company stocks to raise investment funds for the development of the EMedicalid Smartcard and Smartcard Reader.

The investigation revealed that Murphy raised more than $338,000 from investors to develop the EMedicalid Smartcard and Smartcard Reader. The device is designed to store an individual’s entire medical history so it can be provided to medical personnel with information prior to a patient’s treatment. To date, no such device has been developed by Murphy.

In November 2009, investigators received new information alleging that Murphy had expanded his scheme and was selling securities through a business venture involving the purchase of land in Quitman, Ga. Murphy allegedly told investors that the land had access to aquifers and that a major supermarket chain agreed to purchase the water for six cents per gallon to keep up with increasing consumer demand. Murphy allegedly told investors that several major corporations were either interested in investing with his companies or were in negotiations to buy them out.

In addition, Murphy allegedly told investors that his Smartcard and Smartcard Reader was operational in several hospitals nationwide and had generated $2.5 million in sales since 2007. Murphy promised his investors more than eight percent interest on their initial investment. Investigators continue to identify additional investors.

Murphy was previously arrested by FDLE in 2005 and charged with the sale of unregistered securities and sale of securities by an unlicensed dealer. He was subsequently sentenced to 24 months of probation.

Murphy was charged today with one count of organized scheme to defraud and one count of grand theft over $100,000, both first-degree felonies; five counts of grand theft over $20,000, a second-degree felony; 11 counts of sale of unregistered securities, 11 counts of sale of securities by an unregistered dealer, and five counts of grand theft over $300, all third-degree felonies.

Murphy was booked in the Polk County Jail. This case will be prosecuted by the State Attorney’s Office, 10th Judicial Circuit. The investigation is active and ongoing.

For Further Information Contact:
Heather Smith, Kristen Chernosky or Mike Morrison
FDLE Office of Public Information
(850) 410-7001

Dave Couvertier
Public Information Officer
Federal Bureau of Investigation
(813) 253-1000