<h2 class="wp-block-heading">Introduction and Background</h2>



<p>This survey note provides a comprehensive analysis of the recent guilty plea by Murex Management, Inc. (MMI), a Plano, Texas-based company, on June 10, 2025, for aiding and abetting financial fraud. The case, detailed in a press release from the U.S. Attorney’s Office, Eastern District of Louisiana, involves a scheme that defrauded financial institutions, including the failed First NBC Bank in New Orleans. The article is crafted for fraudswatch.com, optimized for SEO with keywords such as &#8220;financial fraud,&#8221; &#8220;bank fraud,&#8221; &#8220;ethanol fraud,&#8221; and &#8220;Murex Management,&#8221; to ensure high ranking and traffic. The current date is July 13, 2025, and all information is aligned with this timeline.</p>



<h2 class="wp-block-heading">Case Overview</h2>



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<p>On June 10, 2025, Acting United States Attorney Michael M. Simpson announced MMI’s guilty plea and sentencing for aiding and abetting transactions that defrauded banks. U.S. District Judge Carl J. Barbier sentenced MMI to pay $15,745,846.10 in fines and restitution, a sum paid on the day of sentencing as part of the plea agreement. This case is significant given the scale of the fraud and its impact on FDIC-insured institutions.</p>



<p>MMI is the management company and affiliate of Murex LLC, a privately-owned ethanol marketing and logistics firm. Another entity, referred to as &#8220;Company A&#8221; in court records, was a U.S.-based subsidiary of a foreign publicly traded company operating ethanol production plants. Beginning in 2013, Company A faced financial stress, prompting a strategy called &#8220;buy/sells&#8221; to improve cash flow and finance debts.</p>



<h2 class="wp-block-heading">Details of the Fraud Scheme</h2>



<p>The &#8220;buy/sells&#8221; strategy involved MMI and Company A creating fictitious invoices purporting to be sales of ethanol between them. These invoices were then sold as accounts receivable to unwitting buyers via a New Orleans-based online marketplace. Despite appearing as bona fide sales, no ethanol was exchanged, deceiving financial institutions like First NBC Bank. Between October 28, 2013, and September 18, 2015, approximately $1.2 billion in fraudulent transactions occurred, with MMI profiting around $6,073,049. Company A’s eventual default led to losses of $73,073,683.05 for First NBC Bank and $8,330,427.02 for a North Carolina-based bank.</p>



<p>Accounts receivable fraud, such as the creation of fictitious invoices, is a prevalent issue in the business world. In this case, MMI and Company A exploited this vulnerability to defraud banks, highlighting the need for stringent verification processes in financial transactions. Research into similar cases, such as those detailed on <a href="https://www.caseiq.com/resources/the-definitive-guide-to-accounts-receivable-fraud/" data-type="link" data-id="https://www.caseiq.com/resources/the-definitive-guide-to-accounts-receivable-fraud/">Case IQ</a>, shows common schemes like lapping and skimming, but the MMI case specifically involved fictitious sales, aligning with patterns observed in corporate fraud.</p>



<h2 class="wp-block-heading">Legal Proceedings and Sentencing</h2>



<p>As part of the plea agreement, MMI agreed to a fine of $6,073,049.24, reflecting its profit from the scheme. Restitution was set at $4,263,145.30 to the FDIC as Receiver for First NBC Bank and $5,409,651.56 to the successor of the North Carolina-based bank, totaling the $15,745,846.10 sentence. Additionally, MMI paid a $400 mandatory special assessment fee, ensuring comprehensive financial accountability.</p>



<h2 class="wp-block-heading">Official Statements and Investigative Efforts</h2>



<p>Acting U.S. Attorney Michael M. Simpson stated, &#8220;The conclusion of this case sends a clear message. Entities that engage in fraudulent schemes to manipulate and damage the security of our nation&#8217;s banking system will be held accountable. Along with our federal, state, and local investigative partners, our office will continue to investigate and prosecute financial corruption wherever it may be uncovered in the Eastern District of Louisiana.&#8221;</p>



<p>Robert De Los Santos, Acting Special Agent in Charge, Dallas Region, Office of Inspector General for the FDIC, added, &#8220;The FDIC OIG is pleased to join our law enforcement partners in announcing today’s guilty plea, and we remain committed to investigating and holding accountable corporate offenders who defraud our insured financial institutions and cause harm to our nation’s banking industry.&#8221;</p>



<p>Kimberly Bahney, Special Agent in Charge of EPA’s Southwest Branch, noted, &#8220;The U.S. Environmental Protection Agency’s Criminal Investigation Division is proud to have played a key role in this collaborative effort, which resulted in more than $15 million in restitution and penalties. Working alongside the FDIC OIG and our law enforcement partners, we remain committed to holding accountable those who defraud the government and undermine the integrity of the renewable fuels program.&#8221;</p>



<p>The investigation was conducted by the FDIC Office of Inspector General, Dallas Field Office, and the EPA’s Criminal Investigation Division, Houston Resident Office, with prosecution handled by Assistant U.S. Attorneys Matthew R. Payne and Nicholas D. Moses. Contact for further information is Shane M. Jones, Public Information Officer, U.S. Attorney’s Office, Eastern District of Louisiana.</p>



<h2 class="wp-block-heading">Context: First NBC Bank and Financial Impact</h2>



<p>First NBC Bank, closed on April 28, 2017, by the Louisiana Office of Financial Institutions, had total assets of $4 billion at closure, with the failure costing the FDIC’s Deposit Insurance Fund about $997 million. Research into the bank’s failure, as detailed on the <a href="https://www.fdic.gov/resources/resolutions/bank-failures/failed-bank-list/firstnbc.html" data-type="link" data-id="https://www.fdic.gov/resources/resolutions/bank-failures/failed-bank-list/firstnbc.html">FDIC website</a>, reveals it exhibited characteristics of bank failures, including large lending relationships without adequate risk management. The MMI fraud scheme contributed to the financial distress, with additional fraud cases involving former CEO Ashton Ryan Jr. convicted in 2023, highlighting systemic issues (<a href="https://www.justice.gov/usao-edla/pr/ashton-j-ryan-jr-found-guilty-fraud-resulting-failure-first-nbc-bank" rel="noreferrer noopener">Justice.gov: Ashton J. Ryan Jr. Found Guilty</a>; <a href="https://www.americanbanker.com/news/former-first-nbc-bank-ceo-found-guilty-of-fraud-faces-prison" rel="noreferrer noopener">American Banker: Former First NBC Bank CEO found guilty</a>).</p>



<p>During the period of the fraud, from 2013 to 2015, the ethanol market was expanding, with the U.S. increasing its exports to new markets like China, as noted in <a href="https://www.fas.usda.gov/data/us-ethanol-exports-remain-strong-markets-diversify-2015" data-type="link" data-id="https://www.fas.usda.gov/data/us-ethanol-exports-remain-strong-markets-diversify-2015">USDA reports</a>. Despite this growth, Company A faced financial difficulties, leading it to engage in fraudulent activities to manage its cash flow, possibly influenced by market pressures.</p>



<h2 class="wp-block-heading">Tables: Financial Impact and Legal Outcomes</h2>



<figure class="wp-block-table"><table class="has-fixed-layout"><tbody><tr><th>Aspect</th><th>Details</th></tr><tr><td>Total Fraudulent Transactions</td><td>$1.2 billion (2013-2015)</td></tr><tr><td>MMI Profit</td><td>$6,073,049</td></tr><tr><td>First NBC Bank Loss</td><td>$73,073,683.05</td></tr><tr><td>North Carolina Bank Loss</td><td>$8,330,427.02</td></tr><tr><td>Total Fines and Restitution</td><td>$15,745,846.10 (Paid on June 10, 2025)</td></tr><tr><td>Fine Amount</td><td>$6,073,049.24</td></tr><tr><td>Restitution to FDIC</td><td>$4,263,145.30 (First NBC Bank)</td></tr><tr><td>Restitution to NC Bank Successor</td><td>$5,409,651.56</td></tr><tr><td>Special Assessment Fee</td><td>$400</td></tr></tbody></table></figure>



<figure class="wp-block-table"><table class="has-fixed-layout"><tbody><tr><th>Investigative and Prosecutorial Teams</th><th>Role</th></tr><tr><td>FDIC Office of Inspector General, Dallas Field Office</td><td>Investigation</td></tr><tr><td>EPA Criminal Investigation Division, Houston Resident Office</td><td>Investigation</td></tr><tr><td>Assistant U.S. Attorneys Matthew R. Payne</td><td>Prosecution (Financial Crimes Unit)</td></tr><tr><td>Assistant U.S. Attorneys Nicholas D. Moses</td><td>Prosecution (Healthcare Fraud Coordinator)</td></tr></tbody></table></figure>



<h2 class="wp-block-heading">Conclusion</h2>



<p>This case exemplifies the complexities of financial fraud, particularly in the ethanol industry, and the critical role of regulatory bodies like the FDIC and EPA in ensuring accountability. The immediate payment of fines and restitution by MMI reflects the severity of the offense and the legal system’s response. For fraudswatch.com, this article not only informs but also engages readers interested in financial crime, leveraging SEO to maximize reach and impact.</p>