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Financial advisor spent $900K from client on country club, cars, authorities say

A financial advisor out of Moorestown was sentenced to seven years in state prison Wednesday for stealing some $900,000 a client had given him to invest and putting it toward lavish personal expenses, authorities said.

Brian Murphy, 47, of Hainesport, pleaded guilty to misapplication of entrusted property and failure to pay New Jersey state income taxes, according to the Burlington County Prosecutor's Office. The charges carried seven and three year sentences, respectively, which Murphy will served concurrently.

He must also repay the former client $890,000 in restitution and surrender his license, authorities said.

Murphy previously worked under the business Murphy Financial Advisors, and began receiving money from the client to invest in mutual funds in 2011, according to the prosecutor's office.

Instead of investing the money as promised, Murphy used it to cover personal and business expenses, buying a country club membership, private school tuition and cars, authorities said.

The client, who sent Murphy money for several years, became suspicious when he or she did not receive financial statements, authorities said. When pressed, Murphy sent the client fraudulent statements, which the client could not verify upon contacting the investment firm, authorities said.

After the client confronted Murphy, he came to the client's home, and brought paperwork stating that the client had agreed to loan Murphy the money, according to the prosecutor's office.

Further investigation into Murphy found that he underreported his income in 2012, 2014 and 2015, and failed to pay state income taxes in 2013, authorities said.

"This sentence reflects the seriousness of this substantial fraud," Prosecutor Scott Coffina said in a statement. "Let it serve as a reminder that we will vigorously prosecute financial advisors and anyone else who steals money entrusted to them by a client."