URBANA, Ill. – A Chandlerville man, Travis L. Murphy, 55, has been sentenced to 42 months imprisonment, followed by 3 years of supervised release for bank fraud. Murphy was also ordered to pay $4,966,624.01 in restitution to UMB Bank.
At the sentencing, the government presented evidence that Murphy and his parents farmed in and around Cass County and that, in 2016, Murphy contracted with UMB Bank for a line of credit in the amount of $1,762,000. During due diligence for the loan, Murphy provided false paperwork claiming that a grain complex asset cost approximately $2.65 million dollars to build when the actual cost was approximately $986,000. The misrepresentation caused UMB Bank to extend the initial loan and other loans based on that false information and false tax returns Murphy provided to UMB Bank. The loans totaled approximately $8.4 million dollars before Murphy attempted to discharge them in bankruptcy. The scheme was identified during civil litigation proceedings in the United States Bankruptcy Court with the participation of the United States Trustee Program and private chapter 7 Bankruptcy Trustee Andrew S. Erickson. The United States Trustee Program works to promote the integrity and efficiency of the bankruptcy system for the benefit of all stakeholders and supervises private trustees who administer bankruptcy cases under chapters 7, 12, and 13 of the Bankruptcy Code. Murphy’s attempt to discharge his debts to UMB Bank was ultimately denied in a 2020 opinion written by United States Bankruptcy Judge Mary P. Gorman. Murphy was indicted in 2023 by a Grand Jury in the Central District of Illinois for Bank Fraud and he pled guilty in 2025.
Also at the sentencing hearing, Chief U.S. District Court Judge Colin S. Bruce found that Murphy should face increased criminal punishment because of his significant omissions, misrepresentations, and untruthful testimony given under oath in the bankruptcy proceedings.
The statutory penalties for bank fraud are up to 30 years of imprisonment, up to a $1 million dollar fine, and up to 5 years of supervised release. “Those that abuse our banking and bankruptcy system cause significant harm to law-abiding citizens,” said United States Attorney Gregory M. Gilmore. “We will continue to hold these individuals accountable and appreciate the collaborative efforts of the U.S. Bankruptcy Court, U.S. Trustee Program and FBI in pursuing these cases and minimizing further harm to the government.”
“Murphy worked to undermine both financial and legal processes through persistent deception,” said FBI Springfield Field Office Special Agent in Charge Ryan Presley. “Even when his actions were challenged, he chose to continue misleading and shifting blame. The FBI remains committed to ensuring individuals who engage in this level of dishonesty are held to account, and we value the partnership that helped bring this case to conclusion.”
“The USTP is committed to addressing fraudulent and abusive conduct that threatens the integrity of the bankruptcy system,” said Monica Kindt, Acting U.S. Trustee for Region 10, which includes the Central District of Illinois. “We appreciate the efforts of the U.S. Attorney and our law enforcement partners to combat fraudulent schemes, which often end up in bankruptcy.”
The Federal Bureau of Investigation, Springfield Field Office investigated the case. Assistant United States Attorneys William J. Lynch and Bryan Freres represented the government in the prosecution.