Harford County Business Owner Pleads Guilty In Fraud Scheme Involving over $2.3 Million
Baltimore, Maryland - Michael Murray, age 61, of Street, Maryland, pleaded guilty today to wire fraud in connection with a scheme to establish bogus credit with 71 companies in order to receive $2,304,833.60 in products for which he did not pay, announced United States Attorney for the District of Maryland Rod J. Rosenstein.
According to the plea agreement, in August 2006, Murray, owner of Chesapeake Supply, Inc. located on Shannon Drive in Baltimore, contacted a packaging company in Miami, Florida to set up a credit line to distribute the Miami company’s packaging products. Murray faxed a list of fraudulent credit references to the Miami company falsely indicating that Chesapeake Supply had established a good credit line with five other companies. Based on this false information, the Miami company established a credit line of $50,000 for Chesapeake Supply and in September of 2006, shipped $35,700 of products to Chesapeake Supply. The Miami company did not receive payment for their products.
In March 2007, Murray started Sinclair Enterprises, Inc. located on Shannon Drive in Clifton Park, Maryland. He similarly created and faxed fraudulent documents to numerous companies falsely reflecting that Sinclair Enterprises had established credit with other companies. The companies sent him merchandise based on the bogus credit information. Murray and his companies did not provide payment.
On November 9, 2007, FBI agents seized fax machines reflecting fax numbers used to establish the fake credit references. Investigation to date has revealed that under this scheme, 71 victim companies incurred losses totaling $2,304,833.60.
Murray faces a maximum sentence of 20 years in prison, followed by three years of supervised release. U.S. District Judge William D. Quarles has scheduled sentencing for October 6, 2008 at 9:30 a.m.
United States Attorney Rod J. Rosenstein thanked the Federal Bureau of Investigation for its investigative work and commended Assistant United States Attorney Bonnie S. Greenberg, who is prosecuting the case.