Securities News Releases
Thursday, August 20, 2009
Contact: Laura Egerdal, (573) 526-0949
Carnahan cracks down on CPA charged with taking over $150,000 from Springfield residents
Jefferson City, MO - Secretary of State Robin Carnahan today alerted Springfield residents that Murphy M. Hubbard, a local certified public accountant (CPA), may be selling unregistered investments, concealing information from his clients and taking their savings.
This morning, Carnahan’s office issued a Cease and Desist Order against Murphy M. Hubbard and two of his companies for alleged securities fraud. The Securities Division is working closely with federal and state law enforcement agencies to halt Mr. Hubbard’s activities as quickly as possible.
“Many of Hubbard’s clients may be unaware their savings are at risk,” Carnahan said. “Acting quickly will help safeguard your savings and assist my office in stopping him. Anyone who has used Hubbard’s services should call my office immediately at (800) 721-1996.”
Two Springfield-area investors, both in their seventies, used Hubbard as their accountant for nearly three decades. In 1998, the couple established a trust to fund their grandchildren’s education and enlisted Hubbard to manage the account. The couple was able to put $250,000 of their savings into the trust.
According to the order, Hubbard poorly managed the account and wrote thousands of dollars in checks to his own company. The trust is now worth less than $50,000.
“Hubbard was our accountant for three decades, so I trusted him with the savings for our grandchildren’s education. We had no idea he had been in trouble in the past,” said the 73 year old investor from Rogersville, “I now know you should call the Secretary’s office to check on any new investment, even if you’ve known your accountant for years.”
The order finds that Hubbard failed to disclose information to the elderly investors, including a 1998 cease and desist order and three years’ probation put on his CPA license in 2003. The securities sold through his companies, the Hubbard Group and the Holding Group International, were not registered with the Securities Division as required by law.
During the investigation by Carnahan’s office, Hubbard twice failed to comply with subpoenas. The Springfield man and his companies now face tens of thousands of dollars in possible penalties and costs.
For more information regarding investments and fraud protection, visit the Secretary of State's online Missouri Investor Protection Center at www.MissouriSafeSavings.com or call the toll free Investor Protection Hotline at 1-800-721-1996.
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