Disbarred Dutchess County Attorney Accused Of Bilking Elderly Clients

HOPEWELL JUNCTION, NY — A Dutchess County attorney was arrested after being accused of stealing more than $450,000 from his vulnerable clients.

New York Attorney General Letitia James and acting New York State Police Superintendent Steven A. Nigrelli announced Monday the indictment and arrest of former attorney John Ferdinand Murphy III, 68, of Hopewell Junction.

James said Murphy embezzled more than $450,000 from multiple incapacitated and vulnerable clients.

She said, after he was appointed as a guardian and trustee for his clients, Murphy drained their trust accounts by issuing checks to himself, his company Samron Resources LLC and his own family members.

Murphy was charged with the following for the thefts he committed from June 26, 2015, to Dec. 29, prosecutors said:

• Three counts of second-degree grand larceny, felonies.
• Two counts of third-degree grand larceny, felonies.
• First-degree scheme to defraud, a felony.

James said that taking advantage of our vulnerable communities is disgraceful and absolutely unacceptable.

“The individual indicted today shamelessly embezzled hundreds of thousands of dollars from individuals that the law trusted him to protect,” she said. “My office will continue to protect New York’s most vulnerable residents, and we will fight tirelessly to bring bad actors to justice.”

According to prosecutors, Murphy abused his position as an attorney over the course of nearly seven years by taking advantage of vulnerable people and those who were disabled, including those for whom he was appointed to act as guardian or trustee.

In his role as a court-appointed guardian and trustee for incapacitated people and their special needs trusts, Murphy issued more than $350,000 in checks for his own use, authorities said.

Additionally, while acting as trustee for a family friend who is an 89-year-old retiree, Murphy stole more than $80,000 and failed to pay the her tax and utility bills, prosecutors said. His failure to do so caused her utilities to be shut off on multiple occasions, and even resulted in a foreclosure proceeding on her home.

In an attempt to conceal the foreclosure, Murphy sought a seller for the home and collected a $10,000 down payment, which he then deposited into his own account, the attorney general’s office said. The home was never conveyed to the seller, and Murphy did not return the down payment.

James said the victim has been able to remain in her home with the assistance of the New York City Justice Center.

Murphy was suspended from practicing law in August 2021 and disbarred in December 2021.

After being arraigned, he was released with electronic monitoring.

Murphy faces up to 20 years in prison if convicted of the charges, prosecutors said.