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Senator says settlement resolves suit
Murphy WEB

A veteran state lawmaker from Cumming says he has taken steps to comply with a recent judicial order.

State Sen. Jack Murphy, a Repub-lican who represents District 27, was ordered by a federal judge in March to pay more than $263,000 to the Federal Deposit Insurance Corporation.

Murphy said Tuesday that he settled in April with the FDIC and will pay the full note, plus fees, over the next few weeks.

“I can’t disclose the details of it, but we settled the note in its entirety and I will pay the full amount of the note,” he said.

“I didn’t get any favoritism shown to me by the FDIC. Although there have been others that have gotten favoritism by the FDIC, I am not one of them.”

Officials with the FDIC said they could not comment on the matter at this time.

Murphy, chairman of the Senate Banking and Financial Institutions Committee, owed $193,187 on a loan he took out in 2003 with Silverton Bank to purchase more shares of Integrity Bank, on which he served as a board member.

Murphy used 30,000 shares of Integrity as collateral, but the bank was shut down by the FDIC in August 2008, meaning the stock had no value once the bank’s five branches were closed.

Silverton Bank failed after filing its lawsuit against Murphy, however the bank and lawsuit were taken over by the FDIC.

Murphy said he’s glad to be moving forward.

“We’ve had to work through a lot of things and financial stuff,” he said. “I’ve paid all my bills. I just wanted to clear the record on this thing. I’m not getting any favoritism on it.”

The settlement, however, does not entirely resolve Murphy’s legal issues.

The veteran lawmaker still is facing another lawsuit filed by the FDIC, which charges him and seven other Integrity Bank executives for various actions that allegedly led to the bank’s failure.

The FDIC is seeking $70 million in that suit.