Springfield CPA indicted for fraud, evading taxes

A criminal investigation by the Internal Revenue Service has led to the indictment of a Springfield accountant and tax preparer.

A federal grand jury on Dec. 16 indicted Murphy M. Hubbard, owner of The Hubbard Group PC, 425-B W. Plainview Road, for misappropriating trust fund money and tax evasion. According to a news release issued by Matt J. Whitworth, U.S. attorney for the Western District of Missouri, Hubbard, 63, faces 11 charges - six counts of mail fraud and five for tax evasion for tax years 2002-06.

Hubbard is accused of using money from two trust funds, the Hazel Beatrice S. Hirst Trust and the Noel C. Rummens Educational Trust, for his personal benefit. The indictment said Hubbard created a company, The Business Group International Ltd., and directed funds, including money transferred from the Rummens and Hirst funds, in an attempt to evade paying income tax. Charities named as beneficiaries in the Hirst Trust - including The Family Violence Center of Springfield, the American Heart Association and the American Lung Association - did not receive any distributions from the trust, the indictment said.

The charges await a federal trial jury.

Hubbard and two of his companies, The Hubbard Group and Holding Group International Ltd., were issued a cease-and-desist order in August by Missouri Secretary of State Robin Carnahan. In a visit to Springfield announcing the order, Carnahan said Hubbard allegedly sold unregistered securities and funneled investments to his companies.