PORTLAND, Maine — Prosecutors and defense attorneys continue to discuss a plea agreement for a Scarborough man charged with defrauding investors of at least $1.1 million over five years.
Philip E. Moriarty, 47, is charged with six federal counts of wire fraud, according to a January 2014 indictment from an Illinois grand jury.
In February, Moriarty pleaded not guilty to the charges and was released from federal custody on $25,000 cash bail.
Prosecutors charge that while living in Illinois between May 2008 and June 2013, Moriarty owned and operated First Street Capital Partners, LLC, a Delaware company with an office in Chicago, which he presented as a financial services provider; and Teton Acadia Capital Partners LLC, a Wyoming company that owned and operated sporting goods stores in Jackson, Wyoming.
The indictment alleges that Moriarty solicited investors in the two companies using false and fraudulent documentation and provided them with fraudulent and phony stock purchase agreements. He 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.
In March, Judge John Z. Lee granted Moriarty’s attorneys request for a delay to allow them to review “voluminous” discovery turned over by prosecutors — a request that was repeated and granted again on April 30.
At a June 25 hearing, and then again on Aug. 12, prosecutors and defense attorneys told the court they were discussing a plea agreement. Lee set the next hearing for Sept. 24 in Chicago.