Ellington Woman Pleads Guilty to Fraud and Tax Offenses

David X. Sullivan, United States Attorney for the District of Connecticut, announced that HEATHER MURDOCK, 58, of Ellington, pleaded guilty today before U.S. District Judge Sarah F. Russell in New Haven to fraud and tax offenses stemming from an embezzlement scheme.

According to court documents and statements made in court, Murdock was employed as the bookkeeper and office manager at a Hartford law firm, identified in court documents as "Firm A." Between approximately 2010 and 2022, using Firm A's bookkeeping software, Murdock generated hundreds of false checks made payable to herself and on which she forged the signature of Firm A's owner. To conceal her embezzlement, Murdock doctored the bookkeeping system entries to make it appear that the checks had been issued to legitimate vendors. Murdock deposited the forged checks into her own bank account. Murdock stole approximately $578,279 through this scheme.

Murdock also stole cash rental payment made by tenants of properties owned by Firm A's owner. To conceal her theft, Murdock generated false checks from Firm A's bank account payable to the account in which Firm A's owner received rental income, making it appear that the expected deposits of rental income had been made, and doctored references in the firm's bookkeeping system. Murdock stole approximately $175,559 through this scheme.

Murdock failed to pay federal income taxes on the embezzled funds, substantially underreported her income in 2011 and 2012, and did not file any tax returns for the 2013 through 2022 tax years. As a result, Murdock's underreported tax obligations total $225,991.

Murdock pleaded guilty to one count of bank fraud, an offense that carries a maximum term of imprisonment of 30 years, and one count of tax evasion, an offense that carries a maximum term of imprisonment of five years. She has also agreed to pay $753,838.70 in restitution to the victim, and $225,991 in back taxes, plus penalties and interest, to the IRS.

Judge Russell scheduled sentencing for December 1. Murdock is released on a $40,000 bond pending sentencing.

This investigation is being conducted by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorney Elena L. Coronado.