A Missouri CPA has been sentenced to three and a half years in prison for embezzling more than $400,000 from two trusts he controlled.
Murphy Hubbard was sentenced Wednesday to 42 months in jail for his mail fraud and tax evasion convictions by U.S. District Court Judge Ortrie D. Smith. Hubbard had previously pleaded guilty to two counts of mail fraud and one count of tax evasion. He was remanded into custody immediately following the sentencing.
According to prosecutors, Hubbard owned and operated an accounting and tax business known as The Hubbard Group PC. He embezzled more than $400,000 from two trusts placed under his control by local families between 1998 and 2009. The first of these trusts, created by Hazel Beatrice S. Hirst of Springfield, Mo., designated four local charities as the beneficiaries of her life savings. The second trust, established by the heirs of Noel C. Rummens of Rogersville, Mo., was created for the purpose of funding educational expenses for his surviving heirs and relatives.
However, instead of fulfilling the wishes of the families by executing their trust agreements, Hubbard took the vast majority of the money for himself, using it to pay personal expenses, to buy items such as automobiles and farm equipment and for travel. Virtually all of the money taken from the trusts went unreported to the IRS, resulting in a tax loss of approximately $79,434.
In addition to the 42-month prison term, Judge Smith also ordered Hubbard to pay full restitution to the victims, including $389,221 to the lawful representatives of Hirst’s estate and the Noel C. Rummens Educational Trust, and $79,434 to the IRS.
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