Maine Man Dies Before Sentencing In $1.15M Fraud
March 10--PORTLAND, Maine -- A 49-year-old Northeast Harbor man who pleaded guilty in 2016 to defrauding investors of at least $1.15 million died in January in Connecticut, just one week before he was due to be sentenced on a federal wire fraud charge.
Philip E. 'Phipps' Moriarty II, formerly of Scarborough and originally from Illinois, died Jan. 23 in New Haven, Connecticut, following a long illness, according to his obituary.
In January 2014, Moriarty was indicted on six federal counts of wire fraud. Prosecutors alleged that during a 25-year career in financial services, including a stint at J.P. Morgan, Moriarty fraudulently solicited investors in two companies, First Street Capital Partners, LLC, and Teton Acadia Capital Partners, LLC, using false information. He also allegedly gave them phony stock purchase agreements.
Moriarty allegedly used those funds to pay for personal expenses, including a $42,416 payment on a personal credit card, approximately $39,100 to a golf, hunting and fishing club, and approximately $23,000 to a boarding school in New Hampshire, according to court documents.
Moriarty initially pleaded not guilty but in February 2016, according to the terms of a plea agreement, he pleaded guilty to a single count of wire fraud and prosecutors dismissed the remaining five counts.
Moriarty agreed to pay $750,000 in restitution to two investors, both from Illinois, according to Joseph Fitzpatrick, Assistant U.S. Attorney in Chicago.
He faced a maximum sentence of 20 years in prison. Sentencing was initially set for June 2016, but was postponed at least nine times, according to court documents.
At a Jan. 20 hearing, U.S. District Court Judge John Z. Lee, in Chicago, ordered Moriarty to appear for sentencing on Jan. 30 unless he underwent surgery that week.
Following Moriarty's death, Lee on Tuesday ordered that the $750,000 be distributed to the two investors, and the case was dismissed, according to court documents.
Chicago attorney Anthony Schumann, who represented Moriarty, did not return repeated requests for comment.
Fitzpatrick said Thursday that he could not comment further on the case.
Moriarty's 10-bedroom, 8,134-square-foot "cottage" in Northeast Harbor is listed for sale for $5 million by Carter's Real Estate.
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