Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: THURSDAY, March 19, 1992 TAG: 9203190251
SECTION: VIRGINIA PAGE: B4 EDITION: NEW RIVER VALLEY
SOURCE: Associated Press
DATELINE: NEWPORT NEWS LENGTH: Medium
About 150 people, some of them anxious ex-clients, crowded into a courtroom to hear the receiver's preliminary report on the estate of David M. Murray Sr., 60, who authorities said shot himself Feb. 7 on Hatteras Island, N.C.
The day before, FBI agents had seized Murray's records in an investigation into his investments. In Norfolk, Assistant U.S. Attorney Harvey L. Bryant said at least 200 people had poured money into Murray's various schemes.
The claims against Murray's estate far exceed those against Steven Romer, a New York City lawyer sentenced in January to more than 22 years in prison. Romer was ordered to repay more than $7 million of the $15.5 million in claims against him in what was the nation's largest theft case involving a lawyer.
After Murray's death, Michael E. Mares was appointed by Circuit Judge Fred Bateman to delve into Murray's records to try to determine how much he owned and owed.
What Mares discovered was a mass of records, mostly handwritten, that raised questions about whether Murray had been bilking clients and business associates.
The receiver said he found potential assets of $10.5 million to $12 million in Murray's estate and among his corporate interests. But Murray also owed $8.8 million to banks and other lenders, and claims for almost $32.2 million already have been lodged, Mares said.
Paul Venable is worried he might get overlooked. "I've never had anything in my life to tear me up like this," he said, shaking his head.
Venable showed up at the hearing on behalf of the family of a former neighbor, Eddie Lathan, an auto mechanic who died in September leaving $54,600 to his granddaughter. Venable, named trustee in Lathan's will, said he had sought Murray's help because the attorney had written the will.
Venable said he discovered the lawyer wrote a check to himself for $52,500 a day after receiving the check for the granddaughter's trust. "I have hope, but it doesn't look too good after what I heard in here," Venable said.
Mares said he found 27 checking accounts belonging to Murray, but only a small number of them were active. The most active account disbursed about $10.5 million last year, and "many of these checks had no notation" as to what they were for, he said.
Murray apparently wrote checks that were interest payments on investments but told recipients that the interest was not taxable and did not file required 1099 forms with the Internal Revenue Service, the receiver said.
He said he has found about $27,000 in cash that belonged to Murray and asked for more time to evaluate the worth of real estate holdings of the estate and Murray's corporations.
Bateman set another hearing for April 9.
Philip L. Hatchett, the receiver's attorney, gave the court a copy of Murray's will. The will named Crestar Bank as executor, but Hatchett said the bank has declined to serve. Murray's widow, Anne, has filed for bankruptcy.
The case has shocked people who knew Murray, the son of a prominent lawyer, Philip W. Murray.
Retired Rep. Thomas Downing, a lawyer, described him as a loner.
"Everybody knew David, I suppose, in terms of his father," Downing said. "His father was the epitome of integrity. He was an able lawyer and was highly respected, and that sort of washed off on David. I thought he was someone who could be trusted to the end of the road."
Memo: shorter version ran in the Metro edition.