Ex-California Army National Guard Commander in OC Admits He's a Scumbag Crook


A 70-year-old retired colonel in the California Army National Guard pleaded guilty today in federal court to running a Ponzi scheme that defrauded at least 28 victims approximately $2.7 million, according to a U.S. Department of Justice announcement.

Timothy Melvin Murphy, a resident of Orange and at one point the commanding officer of the Guard's base in Los Alamitos, admitted to federal prosecutor Robert J. Keenan that he made false promises to dupe individuals into investing in his Capital Investors, Inc. of Orange County.
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Murphy is scheduled to be sentenced by U.S. District Court Judge David O. Carter
on June 15. He faces a maximum prison sentence of 20 years and a fine
of more than $5 million. He also will likely have to pay restitution to
his victims.

The crook's illegal scheming apparently was second
nature. In May 2002, authorities  reprimanded him in a public forum for
misusing investors money. The rebuke obviously wasn't enough to scare
him straight. 

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R. Scott Moxley’s award-winning investigative journalism has touched nerves for two decades. An angry congressman threatened to break Moxley’s knee caps. A dirty sheriff promised his critical reporting was irrelevant and then landed in prison. The U.S. House of Representatives debated his work. Federal prosecutors credited his stories for the arrest of a doctor who sold fake medicine to dying patients. Moxley has won Journalist of the Year honors at the Los Angeles Press Club; been named Distinguished Journalist of the Year by the LA Society of Professional Journalists; and hailed by two New York Times Magazine writers for his “herculean job” exposing Southern California law enforcement corruption.

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