A former CEO has found himself in hot water after being charged with manipulating the stock market in a brazen get-rich scheme, authorities say. Robert Scott Murray, the 60-year-old ex-chief of tech firms Stream Global Services and 3Com, has been accused of fraudulently puffing up the stock price of Getty Images to line his pockets. Murray has agreed to plead guilty to a securities fraud charge in connection with the alleged scam, according to a statement from the U.S. Attorney's Office.
Boston's law enforcement brass announced the charges against Murray, once a high-flying exec who attempted to launch himself onto Getty's board and then resorted to devious tactics when rebuffed. According to the Justice Department, Murray controlled around 300,000 shares of Getty through his venture capital firm, Trillium Capital, before issuing bogus press releases and conducting media interviews, promoting a non-existent buyout offer of $10 per share– all to inflate the stock's value so he could sell high.
The scheme reportedly netted Murray a cool $1.5 million when he ditched his stockpile at the peak of the artificial surge. The catch? Getty shares were only worth about half of what Murray's fabricated buyout offer claimed, according to the feds. Just before the market opened on April 24, 2023, following his press release, Getty's shares soared nearly 56%, opening at $7.88 per share, up from the previous close of $5.06.
But things quickly unraveled for Murray when his friend, whom he advised to scoop up Getty shares, received a subpoena from the Securities and Exchange Commission. In texts obtained by investigators, Murray allegedly told his pal to play dumb—"just say there were none" regarding communications about the Getty stock, along with advising to "delete all my texts." This resulted in further damning evidence for the prosecution. Murray is also accused of emailing a faux response for his friend to the SEC that painted a misleadingly innocent picture of their dealings, as reported by the U.S. Attorney's Office.
If convicted, Murray could face a long stretch behind bars – up to 20 years, in addition to fines that could amount to $5 million. His guilty plea, however, might result in a lighter sentence as per federal guidelines. Meanwhile, the SEC is concurrently pursuing a civil complaint against Murray for his role in this high-stakes stock swindle. Assistant U.S. Attorney Christopher J. Markham of the Securities, Financial & Cyber Fraud Unit is leading the prosecution, with Acting United States Attorney Joshua S. Levy and Special Agent Jodi Cohen of the FBI's Boston Division overseeing the case.
It's important to remember that the charges against Murray are, for now, just that – charges. He remains innocent until proven guilty beyond a reasonable doubt. The twists and turns of this case are expected to unravel further as Murray's day in court approaches and justice looks to untangle this web of alleged deception.
