William Herbert Murphy (also known as Bill Murphy) the President and Chief Compliance Officer of William H. Murphy Co. Inc. has been fined $10,000.00 and suspended for five months from associating with any Financial Industry Regulatory Authority (FINRA) member in any principal capacity founded on a National Adjudicatory Council Order Accepting Offer of Settlement based on findings that William Murphy engaged in unregistered securities sales on behalf of William H. Murphy Co. Department of Enforcement v. William H. Murphy Co. Disciplinary Proceeding No. 2012030731802 (Aug. 23, 2021).
According to the Order, on December 21, 2020, Securities and Exchange Commission (SEC) sustained a FINRA National Adjudicatory Council’s findings of Murphy engaging in the violation of Securities Act of 1933 Section 5 through his participation in unregistered securities transactions, and findings of him failing to supervise in a way that complied with Securities Act of 1933 as it related to unregistered securities sales.
Murphy helped effectuate sales for 23 customers who collectively invested $1,031,700.00. He failed to create and implement a supervision system and written supervisory procedures so that transactions complied with federal securities laws. FINRA was tasked by SEC with determining the sanctions for failing to supervise, and Murphy and FINRA agreed for the securities broker dealer to be censured and pay a $10,000.00 fine, and for Murphy to serve a suspension as principal and pay a $10,000.00 fine.
FINRA Public Disclosure additionally shows that on May 2, 2018, an investor filed a civil action involving Murphy’s activities in which they requested $650,000.00 in damages based upon allegations of breach of contract and misrepresentation relating to interest rate swap transactions effected at William H. Murphy Co. Civil Action No. BC-702566 (May 2, 2018). The lawsuit alleges civil conspiracy and the violation of California law. According to the lawsuit, Murphy breached a fiduciary duty to the investor.
Murphy was registered with William H. Murphy Co. between September 27, 1990 and June 29, 2018.
