Lakeland Man Faces Additional Charges in Securities Fraud Scheme

Investigators with the Florida Department of Law Enforcement (FDLE) Lakeland Field Office, Federal Bureau of Investigation (FBI), and the State Attorney’s Office for the 10th Judicial Circuit today arrested Richard Crumpton Murphy, 71, of Lakeland, Fla., for defrauding six additional investors of more than $375,000, bringing the total loss of this scheme to more than $714,000.

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 $714,000 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.

Murphy was today charged with two counts of grand theft over $100,000, a first-degree felony; two counts of grand theft over $20,000, a second-degree felony; six counts of sale of unregistered securities, six counts of sale of securities by an unregistered dealer, and two counts of grand theft over $300, all third-degree felonies.

Murphy was previously arrested by FDLE in March 2010 and charged with similar crimes.

Murphy was booked in the Polk County Jail. This case will be prosecuted by the State Attorney’s Office, 10th Judicial Circuit. Investigators continue to identify additional investors. The investigation remains 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

Darla Dooley
Assistant State Attorney
(863) 534-4800