Texas Company Guilty of Aiding and Abetting Fraudulent Transactions Related to False Ethanol Sales, Pays Over $15,000,000 in Fines, Restitution

NEW ORLEANS –Acting United States Attorney Michael M. Simpson announced today the June 10, 2025, guilty plea and sentencing of Plano, Texas-based MUREX MANAGEMENT, INC.  (“MMI”), for aiding and abetting transactions that defrauded financial institutions, including failed New Orleans-based First NBC Bank.  U.S. District Judge Carl J. Barbier sentenced MMI to pay $15,745,846.10 in fines and restitution, a sum that MMI paid on the day of sentencing as part of its plea agreement in this case.

According to court documents, MMI was the management company and affiliate of Murex LLC, a privately-owned ethanol marketing and logistics company.  Another company, named as “Company A” in court records, was the U.S.-based subsidiary of a separate, foreign publicly traded company that operated ethanol production plants.

Beginning in 2013, Company A and its parent companies, began to experience financial stress.  In order to ameliorate cash flow issues and to manufacture additional financing for its debts, Company A initiated a strategy called “buy/sells” and approached MMI to assist in this strategy.  Company A’s plan called for Company A and MMI, through its affiliate, to create fictitious invoices purporting to be sales of ethanol between the two companies, which could then be sold as accounts receivable to unwitting buyers via a New Orleans-based online marketplace.  This strategy would provide cash flow for Company A and a profit to MMI. Although these invoices purported to show the bona fide sale of ethanol between MMI and Company A, in fact, no ethanol was exchanged between the companies through these transactions.  The unwitting buyers of these fraudulent accounts receivable included FDIC-insured financial institutions like First NBC Bank.

In plea documents, MMI admitted that, between October 28, 2013, and September 18, 2015, Company A and MMI conducted approximately $1.2 billion in fraudulent “buy/sell” transactions, with MMI making a profit of approximately $6,073,049.  Company A eventually defaulted on paying financial institutions for the accounts receivable that had been posted for auction by MMI.  The defaulted auctions caused a loss of approximately $73,073,683.05 to First NBC Bank, and a loss of approximately $8,330,427.02 to a North Carolina-based bank.

As part of MMI’s plea agreement, it agreed to a fine of $6,073,049.24.  Furthermore, MMI agreed as part of its plea to pay $4,263,145.30 in restitution to the Federal Deposit Insurance Corporation as Receiver for First NBC Bank, as well as $5,409,651.56 to the successor of the North Carolina-based bank that also purchased the false accounts receivables.  MMI was also ordered to pay a $400.00 mandatory special assessment fee.

“The conclusion of this case sends a clear message”, said Acting U.S. Attorney Michael M. Simpson.  “Entities that engage in fraudulent schemes to manipulate and damage the security of our nation's banking system will be held accountable.  Along with our federal, state and local investigative partners, our office will continue to investigate and prosecute financial corruption-wherever it may be uncovered in the Eastern District of Louisiana”.

“The FDIC OIG is pleased to join our law enforcement partners in announcing today’s guilty plea, and we remain committed to investigating and holding accountable corporate offenders who defraud our insured financial institutions and cause harm to our nation’s banking industry,” said Robert De Los Santos, Acting Special Agent in Charge, Dallas Region, Office of Inspector General for the Federal Deposit Insurance Corporation.

“The U.S. Environmental Protection Agency’s Criminal Investigation Division is proud to have played a key role in this collaborative effort, which resulted in more than $15 million in restitution and penalties,” said Special Agent in Charge Kimberly Bahney of EPA’s Southwest Branch.  “Working alongside the FDIC OIG and our law enforcement partners, we remain committed to holding accountable those who defraud the government and undermine the integrity of the renewable fuels program.”

Acting U.S. Attorney Simpson praised the work of the FDIC Office of Inspector General, Dallas Field Office, and the Environmental Protection Agency, Criminal Investigation Division, Houston Resident Office, that investigated this matter.  Assistant United States Attorneys Matthew R. Payne of the Financial Crimes Unit and Nicholas D. Moses, Healthcare Fraud Coordinator, handled this prosecution.