Today, Acting United States Attorney Michael M. Simpson announced that Plano, Texas-based Murex Management, Inc. (MMI) has been charged with aiding and abetting fraudulent transactions that defrauded financial institutions, including the failed New Orleans-based First NBC Bank.
The bill of information states that MMI managed an affiliate involved in ethanol marketing and logistics services. 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 initiated a strategy called "buy/sells" and enlisted MMI's assistance. The plan involved creating fictitious invoices for ethanol sales between the two companies to sell as accounts receivable to unsuspecting buyers through a New Orleans-based online marketplace. This would provide cash flow for Company A and profit for MMI. Among these unwitting buyers were financial institutions like First NBC Bank.
According to the bill of information, from October 28, 2013, to September 18, 2015, Company A and MMI conducted approximately $1.2 billion in fraudulent "buy/sell" transactions. MMI reportedly made a profit of about $6,073,049 from these activities. Ultimately, Company A defaulted on payments to financial institutions for the auctioned accounts receivable posted by MMI. This resulted in losses of approximately $73 million to First NBC Bank and around $8 million to a North Carolina bank.
If convicted, MMI could face a maximum fine of $1 million or twice the gross gain or loss to any victim. Additionally, it will 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 a charge and that guilt must be proven beyond a reasonable doubt.
Simpson commended the efforts of the FDIC Office of Inspector General's Dallas Field Office and the Environmental Protection Agency's Criminal Investigation Division's Houston Resident Office for their investigation into this matter. Assistant United States Attorneys Matthew R. Payne from the Financial Crimes Unit and Nicholas D. Moses, Health Care Fraud Coordinator are handling this prosecution.