Today, Acting United States Attorney Michael M. Simpson announced the filing of a bill of information against Plano, Texas-based Murex Management, Inc. (MMI). The company is charged with aiding and abetting transactions that defrauded financial institutions, including the now-defunct First NBC Bank in New Orleans.
The bill of information reveals that MMI managed an affiliate involved in ethanol marketing and logistics services. Additionally, Company A was identified as a U.S.-based subsidiary of a foreign publicly traded company operating ethanol production plants.
Beginning in 2013, Company A and its parent companies faced financial difficulties. To address cash flow issues and secure additional financing for debts, Company A implemented a strategy known as "buy/sells," targeting MMI to assist. This plan involved creating fictitious invoices representing sales of ethanol between the two companies. These invoices were then sold as accounts receivable to unsuspecting buyers via a New Orleans-based online marketplace, generating cash flow for Company A and profit for MMI. Among these unwitting buyers were financial institutions like First NBC Bank.
The bill alleges that from October 28, 2013 to September 18, 2015, approximately $1.2 billion in fraudulent "buy/sell" transactions occurred between Company A and MMI. During this period, MMI reportedly made a profit of around $6 million. However, Company A defaulted on payments to financial institutions for accounts receivable posted by MMI for auction. This default resulted in losses estimated at $73 million to First NBC Bank and over $8 million to another bank in North Carolina.
If convicted, MMI could face a maximum fine of $1 million or twice the gross gain or loss incurred by any victim. The company would also be required to pay restitution and a mandatory special assessment fee of $400.
Acting U.S. Attorney Simpson emphasized that the bill of information is merely an accusation requiring proof beyond reasonable doubt for conviction.
Simpson acknowledged the efforts of several investigative bodies: "the FDIC Office of Inspector General, Dallas Field Office," "the Environmental Protection Agency," and its "Criminal Investigation Division." Assistant United States Attorneys Matthew R. Payne from the Financial Crimes Unit and Nicholas D. Moses served as prosecutors on this case.
