On 26 April 2022, Debt Wipeout business operator David Gregory Murphy (also self-identified as Dr David Murphy or Professor David Murphy) appeared at Downing Centre Local Court in NSW, charged with engaging in dishonest conduct while carrying on a financial services business and making false or misleading statements.
It is alleged that between September 2019 and November 2020, Mr Murphy, by advertising the Debt Wipeout business on billboards, websites and in person, represented to consumers he could discharge existing debts in return for an up-front ‘swap’ payment of a percentage of the outstanding debt. It is further alleged that consumers then paid the ‘swap’ payment to Mr Murphy, but Mr Murphy could not, and did not, discharge the consumers’ debts.
It is also alleged that between August 2019 and August 2020, Mr Murphy published statements in Shopa Docket advertisements suggesting that Debt Wipeout, a business operated by Mr Murphy, could wipe out debts for only 15% or 25% of the outstanding balance, when he knew, or ought to have known, that such a statement was false or misleading.
ASIC previously obtained Federal Court orders against Mr Murphy and other parties, including orders which prohibit Mr Murphy from carrying on, advertising or promoting a business in which consumers with debts pay for Mr Murphy or certain other parties to discharge the consumer’s debts with a non-cash payment (20-243MR).
ASIC urges those who may have engaged Mr Murphy’s services believing he would discharge their debts to seek independent legal advice.
The matter is next listed for mention on 3 May 2022 in the Downing Centre Local Court, Sydney.
This matter is being prosecuted by the Commonwealth Director of Public Prosecutions after an investigation and referral by ASIC.
Background
On 27 April 2021, ASIC also obtained additional orders by consent in the Federal Court restraining certain other parties from from carrying on, promoting or providing referrals to any business associated with Mr Murphy or another party, where consumers pay for their debts to be discharged with a non-cash payment (21-089MR).
The maximum penalty for an individual person found guilty of engaging in dishonest conduct while carrying on a financial services business is up to 15 years imprisonment, a fine of $999,000 or three times the total value of the benefit received (whichever is higher), or both.
The maximum penalty for an invidivual person found guilty of making false and misleading statements is up to 15 years imprisonment, a fine of $999,000 or three times the total value of the benefit received (whichever is higher), or both.
Moneysmart.gov.au has further information about getting debt under control, and how to manage debt.
Editor's note:
On 3 May 2022, the matter was adjourned until 31 May 2022. The Court set bail conditions for Mr Murphy, including that he not engage in, or promote, in any way, a business that purports to pay, discharge, extinguish or wipe out a loan or debt.
Editor's note 2:
On 31 May 2022, the matter was committed to the NSW District Court for mention on 1 July 2022.
Editor’s Note 3:
Following a case management hearing in the District Court on 1 July 2022, the Court listed the matter for a further case management hearing on 15 July 2022.
Editor's note 4:
Following a case management hearing in the District Court on 15 July 2022, the Court listed the matter for a further case management hearing on 12 August 2022.
Editor's note 5:
Following a mention in the District Court on 12 August 2022, the Court listed the matter for further mention on 18 August 2022.
Editor’s note 6:
Following a mention in the District Court on 18 August 2022, the Court listed the matter for further mention on 1 September 2022.
Editor's note 7:
Following a mention in the District Court on 1 September 2022, the Court listed the matter for further mention on 22 September 2022.
Editor’s note 8:
The further mention listed on 22 September 2022 was re-listed for 28 September 2022. Following a mention in the District Court on 28 September 2022, the Court re-listed the matter for further mention to 5 October 2022 after Mr Murphy failed to appear.
Editor’s note 9:
Following a mention in the District Court on 5 October 2022, the Court re-listed the matter for further mention on 14 December 2022.
Editor’s note 10:
Following a mention in the NSW District Court on 14 December 2022, the Court re-listed the matter for further mention on 16 December 2022.
Editor's note 11:
The matter has been adjourned for further hearing on 25 January 2023.
Editor's note 12:
The matter has been adjourned for further hearing on 22 February 2023.
Editor’s note 13:
The matter has been adjourned for further hearing on 21 August 2023.
Editor's note 14:
The matter has been adjourned to 12 December 2023.