Patrick Reily Murphy Jr., Former Insurance Broker, Sentenced to 18 Months in Prison
Former Fairhope Broker Convicted of Fraud
Fairhope, AL
Patrick Reily Murphy Jr., a former Eastern Shore insurance broker, has been sentenced to 18 months in prison for his role in a fraud scheme. Murphy was convicted of conspiracy to commit mail fraud and wire fraud in connection with a scheme to defraud insurance companies.
Murphy, who owned and operated Murphy Insurance Agency in Fairhope, was found to have submitted false claims to insurance companies on behalf of his clients. The claims were for repairs to homes and businesses that had not actually been damaged. Murphy received a portion of the insurance proceeds from the fraudulent claims.
The scheme was uncovered by the Federal Bureau of Investigation (FBI) and the Alabama Insurance Department. Murphy was arrested in 2020 and charged with conspiracy to commit mail fraud and wire fraud. He pleaded guilty to the charges in September 2021.
In addition to the prison sentence, Murphy was ordered to pay $1 million in restitution to the insurance companies that were defrauded. He is also prohibited from working in the insurance industry for the rest of his life.
Murphy's sentencing is a reminder that insurance fraud is a serious crime. Those who engage in such schemes will be held accountable for their actions.
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