A Chandlerville farmer now faces potential federal prison time for pleading guilty to bank fraud earlier this month in a federal court.
Travis L. Murphy, 42, of Chandlerville pleaded guilty to a single county of felony bank fraud in the Central District Court of Central Illinois on September 4 before Magistrate Judge Ronald L Hanna. Murphy was facing four counts of bank fraud alleging over $8.4 million in fraud and one count of bankruptcy fraud in the case.
According to a federal grand jury indictment returned in June 2023, Murphy was alleged through his business Murphy Farms to have devised a scheme to defraud a FDIC insured bank and obtain its funds by making materially false and fraudulent pretenses, representations, and promises. According to the indictment, Murphy obtained loans totaling over $8.4 million after submitting documents that misrepresented his property values, crop holdings, and income. After obtaining the loans and defaulting on payment, Murphy later sold collateral, being crops, outside of the agreement. Further, Murphy reiterated the inflated value of his property on his petition when he filed for bankruptcy.
The charges were a result of an investigation by the Federal Bureau of Investigation, Springfield Field Office. The bankruptcy fraud charge was referred for criminal prosecution by the Office of the United States Bankruptcy Trustee for Region 10. The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, Indiana, with additional offices in South Bend, Indiana, and Peoria, Illinois.
Judge Hanna accepted the plea at the September 4 hearing and referred Murphy’s case to the federal Probation Office for a Pre-sentence Investigation and Report. Murphy faces a penalty of up to thirty years in prison and five years of supervised release on the bank fraud count. The charge also carries a maximum fine of up to $1 million.
Sentencing has been set for a hearing on January 26, 2026 in Urbana before Judge Colin S. Bruce.