the patrick murphy scandal primer

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THE PATRICK MURPHY SCANDAL PRIMER: Patrick Murphy’s Patter !" Lyi# A$%ut His Li"e St%ry  Patrick Murp hy has campai gned on his exper ience as a CPA and small business owner as his qualificati ons for Congress. After several investigativ e news reports, Murphys business experience narrative has been proven false. Murphy exaggerated or mislead about his education credentials, work as a CPA, and being a small business owner who cleaned up oil in the !ulf of Mexico. "he truth# Murphy never worked as a CPA, never was a small business owner, and was never awarded any contracts to clean up oil in the !ulf of Mexico. MURPHY LIED A&!UT HIS EDUCATI!N  Murphy Lied About Ha ving Dual Degrees I May '()*+ The Miami Her ald Rep%rte, That Murphy E-$e..ishe, His E,ucati% Cre,etia.s &y C.ai-i# That He Ha, T/% De#rees+ 0he He !.y Ha, A Si#.e De#ree  Miami Her ald  Hea,.ie: 1Patrick Murphy E-$e..ishe, His Ui2ersity !" Mia-i  Aca,e-ic A chie2e-e t3 (Kristen M. Clark, “Patrick Murphy Embellished His University O Miami !cademic !chievement,"  Miami  $erald , #$%&$') Murphy C.ai-e, He Ha, Eare, De#rees I Acc%uti# A, 4iace+ 0he I 4act He Eare, A Si#.e De#ree I &usiess A,-iistrati%+ 0ith Ma5%r Areas !" Stu,y &ei#  Acc%uti # A, 4i ace6 “*+r the past ' m+nths +n U.-. ep. Patrick Murphy/s +icial c+n0ress i+nal 1ebsite and his campai0n 1ebsite +r U.-. -enate, Murphy claimed he earned 2de0rees in acc+untin0 and inance/ r+m the University + Miami. 3ut that 1as an e4a00erati+n + his

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Page 1: The Patrick Murphy Scandal Primer

7/25/2019 The Patrick Murphy Scandal Primer

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THE PATRICK MURPHY SCANDAL PRIMER:

Patrick Murphy’s Patter !" Lyi# A$%ut His Li"e St%ry 

 Patrick Murphy has campaigned on his experience as a CPA and small business owner as hisqualifications for Congress. After several investigative news reports, Murphys business experiencenarrative has been proven false. Murphy exaggerated or mislead about his education credentials,work as a CPA, and being a small business owner who cleaned up oil in the !ulf of Mexico.

"he truth# Murphy never worked as a CPA, never was a small business owner, and was neverawarded any contracts to clean up oil in the !ulf of Mexico.

MURPHY LIED A&!UT HIS EDUCATI!N

 Murphy Lied About Having Dual Degrees

I May '()*+ The Miami Herald Rep%rte, That Murphy E-$e..ishe, His E,ucati%Cre,etia.s &y C.ai-i# That He Ha, T/% De#rees+ 0he He !.y Ha, A Si#.e De#ree

 Miami Herald  Hea,.ie: 1Patrick Murphy E-$e..ishe, His Ui2ersity !" Mia-i Aca,e-ic Achie2e-et3 (Kristen M. Clark, “Patrick Murphy Embellished His University O Miami !cademic !chievement," Miami

 $erald , #$%&$')

Murphy C.ai-e, He Ha, Eare, De#rees I Acc%uti# A, 4iace+ 0he I 4act HeEare, A Si#.e De#ree I &usiess A,-iistrati%+ 0ith Ma5%r Areas !" Stu,y &ei#

 Acc%uti# A, 4iace6 “*+r the past ' m+nths +n U.-. ep. Patrick Murphy/s +icialc+n0ressi+nal 1ebsite and his campai0n 1ebsite +r U.-. -enate, Murphy claimed he earned 2de0reesin acc+untin0 and inance/ r+m the University + Miami. 3ut that 1as an e4a00erati+n + his

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academic credentials. Murphy 5 a t1+6term 7em+cratic c+n0ressman r+m 8upiter 5 earned a sin0lede0ree r+m the university in %99: a bachel+r/s in business administrati+n, 1ith his ma;+r areas +study bein0 acc+untin0 and inance." (Kristen M. Clark, “Patrick Murphy Embellished His University O Miami !cademic

 !chievement,"  Miami $erald , #$%&$')

MURPHY LIED A&!UT 0!RKIN7 AS A CPA

 Murphy Lied About Working As A CPA For “Several ears! 

I 8ue '()*+ Politi"o E9p%se, Murphy 4%r C.ai-i# That He 0%rke, As A CPA 4%r1Se2era. Years+3 &ut He 0as !.y Licese, As A CPA T% 0%rk 4%r Less Tha A Year

I '()'+ Murphy Ra A T A, T%uti# His E9periece As A CPA6 “P+rtrayin0 himsel as anumbers6savvy CP! that c+uld help cleanup C+n0ress/ b++ks 1as a part + his pitch t+ v+ters durin0his past campai0ns. His campai0ns have hi0hli0hted his CP! e4perience, even releasin0 a %9'% adtitled simply 2CP!./ 2</m Patrick Murphy, </m a certiied public acc+untant,/ Murphy says +penin0 the&96sec+nd sp+t. 2< kn+1 1hat y+u/re thinkin0, acc+untin0, b+rin0, ri0ht= >ell maybe >ashin0t+nneeds a little m+re b+rin0 ri0ht n+1./ 2?+u kn+1 h+1 many acc+untants are in C+n0ress ri0ht n+1=Ei0ht,/ Murphy said. 2< c+unted./" (7aniel 7ucassi, “Patrick Murphy Overstated @en0th O CP! E4perience," Politico, $$')

 Politi"o Hea,.ie: 1Patrick Murphy !2erstate, Le#th !" CPA E9periece3 (7aniel 7ucassi,“Patrick Murphy Overstated @en0th O CP! E4perience," Politico, $$')

Murphy C.ai-e, That He 0%rke, As A CPA 4%r 1Se2era. Years+3 &ut Murphy 0as !.yLicese, As A CPA T% 0%rk 4%r Less Tha A Year6 “ep. Patrick Murphy has cited his 2several years/ as a certiied public acc+untant 1hen buildin0 his public brand, includin0 runnin0 televisi+nads t+utin0 his CP! status, but his CP! licensure rec+rds sh+1 he +nly 1+rked as a practicin0 CP! +rless than a year. 2< spent several years as a certiied public acc+untant 1+rkin0 +r 7el+itte A B+uche 6+ne + the lar0est acc+untin0 irms in the 1+rld, 0+in0 int+ numer+us +rtune #99 c+mpanies l++kin0+r ineiciencies, 1aste and raud,/ Murphy said, intr+ducin0 himsel in a candidate +rum durin0 hissuccessul challen0e t+ !llen >est in %9'%." (7aniel 7ucassi, “Patrick Murphy Overstated @en0th O CP! E4perience,"  Politico,

$$')

• I '((;+ Murphy !$taie, His CPA Licese I C%.%ra,%+ &ecause He Di, N%t MeetThe Aca,e-ic Re<uire-ets T% 7et Licese, I 4.%ri,a6 “Murphy did 0et his CP! licenser+m C+l+rad+ in -ept. %99 ater passin0 the e4am in Derm+nt. He let the irm in May %9'9, andhe rene1ed his license in %9'#. Murphy did n+t meet the academic reuirements t+ 0et licensed asa CP! in *l+rida, but did in C+l+rad+ at the time." (7aniel 7ucassi, “Patrick Murphy Overstated @en0th O CP!

E4perience," Politico, $$')

•  Politi"o: 1A-%# The =uesti%s The Murphy Ca-pai# Le"t Uas/ere, Is H%/ He 0as Auth%ri>e, T% 0%rk As A CPA I 4.%ri,a I" He’s Licese, I C%.%ra,%63“-imilarly, 1hen Murphy applied +r his CP! in C+l+rad+, the educati+n reuirements 1ere l+1erthere than *l+rida, +nly reuirin0 '%9 semester credits. Murphy/s applicati+n sh+1ed he had '&9

semester credits r+m the University + Miami. C+l+rad+/s standard has since chan0ed t+ reuire'#9 semester credits, similar t+ *l+rida/s '#9 semester credit reuirement. F !m+n0 the uesti+nsthe Murphy campai0n let unans1ered is h+1 he 1as auth+riGed t+ 1+rk as a CP! in *l+rida i he/slicensed in C+l+rad+." (7aniel 7ucassi, “Patrick Murphy Overstated @en0th O CP! E4perience,"  Politico, $$')

C#S$ Miami %n"overed &hat Murphy 'ever Worked As A CPA

C&S? Mia-i Uc%2ere, That Murphy 1Has Ne2er 0%rke, A Day I His Li"e As ACerti"ie, Pu$.ic Acc%utat3

C&S? Mia-i: Murphy 1Has Ne2er 0%rke, A Day I His Li"e As A Certi"ie, Pu$.ic Acc%utat63 “*+r instance, he has never 1+rked a day in his lie as a Certiied Public !cc+untant. F

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 !nd he 1as never a small business +1ner. ?et despite 1+rkin0 in Miami, Murphy has never held aCP! license in the state + *l+rida. F -+ 1hen Murphy said in %9'%, “< 0+t my CP! license and < spent years 0+in0 t+ numer+us *+rtune #99 c+mpanies," the truth is he +nly spent at m+st ei0ht m+nths and n+t years 1ith 7el+itte A B+uche h+ldin0 a CP! license valid +nly in C+l+rad+, a state 1hereMurphy has never lived +r 1+rked." (8im 7e*ede, “Bhe Makin0 O Patrick Murphy," C3- Miami, $%%$')

• Murphy 0as !.y Licese, As A CPA I C%.%ra,%+ 0here Murphy Has Ne2er Li2e,

!r 0%rke,6 “*+r instance, he has never 1+rked a day in his lie as a Certiied Public !cc+untant.F !nd he 1as never a small business +1ner. ?et despite 1+rkin0 in Miami, Murphy has never helda CP! license in the state + *l+rida. F -+ 1hen Murphy said in %9'%, “< 0+t my CP! license and <spent years 0+in0 t+ numer+us *+rtune #99 c+mpanies," the truth is he +nly spent at m+st ei0htm+nths and n+t years 1ith 7el+itte A B+uche h+ldin0 a CP! license valid +nly in C+l+rad+, astate 1here Murphy has never lived +r 1+rked." (8im 7e*ede, “Bhe Makin0 O Patrick Murphy," C3- Miami, $%%$')

Murphy T%%k The CPA Licesi# E9a- Nie Ti-es

Murphy T%%k The CPA Licesi# E9a- Nie Ti-es Thr%u#h The State !" er-%t’s&%ar, !" Pu$.ic Acc%utacy &ecause He Di, N%t Meet The 4.%ri,a Re<uire-ets6“7+cuments +btained by C3- Ie1s reveal Murphy t++k the separate parts + the CP! licensin0 e4am

nine times. Bhe e4am is +ten c+nducted in +ur parts and each part can be taken +n separate+ccasi+ns. Bhe rec+rds sh+1, Murphy t++k the e4am by si0nin0 up +r the test thr+u0h the -tate + Derm+nt/s 3+ard + Public !cc+untancy. Bhe reas+n: Murphy did n+t meet *l+rida/s reuirements t+si0n up +r the e4am. He did meet the reuirements in Derm+nt. (Murphy did n+t have t+ physicallytravel t+ Derm+nt each time t+ take the test. Bhere are testin0 centers ar+und the c+untry he c+uldhave 0+ne t+. !nd n+ matter 1here y+u take the test, all CP! e4ams are the same.) C+l+rad+ acceptedthe Derm+nt test results and issued a CP! license t+ Murphy +n -eptember , %99. Murphy let7el+itte A B+uche in May %9'9." (8im 7e*ede, “Bhe Makin0 O Patrick Murphy," C3- Miami, $%%$')

Murphy E9a##erate, His R%.e As A Au,it%r

C&S? Mia-i Rep%rte, That It 0as 1Deci,e,.y Mis.ea,i#3 4%r Murphy T% Ca-pai#

! His E9periece As A CPA 1L%%ki# 4%r Ie""iciecies+ 0aste A, 4rau,63 “<n atelevised debate durin0 his %9'% run +r C+n0ress, Patrick Murphy pr+vided the +ll+1in0 descripti+n+ his 1+rk as a CP!: 2>ell, irst + all 1hen < 0raduated c+lle0e < 1ent t+ 1+rk at 7el+itte A B+uche, <0+t my CP! license and < spent years 0+in0 t+ numer+us *+rtune #99 c+mpanies, l++kin0 +rineiciencies, 1aste and raud./ Bhat statement 0ives a decidedly misleadin0 impressi+n + Murphy/stime ater he 1as licensed as a CP!." (8im 7e*ede, “Bhe Makin0 O Patrick Murphy," C3- Miami, $%%$')

! His CPA Licese App.icati%+ Murphy Liste, His P%siti% 0ith De.%itte @ T%uche As1Au,it Assistat63 “Bhr+u0h a public rec+rds reuest + the C+l+rad+ 7epartment + e0ulat+ry !0encies, 1hich +versees CP! licensin0, C3- Ie1s +btained a c+py + Murphy/s C+l+rad+applicati+n. <n the applicati+n, dated 8une %, %99, Murphy listed his p+siti+n 1ith 7el+itte AB+uche as 2!udit !ssistant./ E4perts in the acc+untin0 industry said it seems unlikely that s+me+ne,

resh +ut + c+lle0e and 1ith+ut a CP! license in the -tate + *l+rida, and h+ldin0 the entry level title+ 2!udit !ssistant/ 1as tasked 1ith 2l++kin0 +r ineiciencies, 1aste and raud./" (8im 7e*ede, “Bhe Makin0 O

Patrick Murphy," C3- Miami, $%%$')

• Sta"%r, &usiess Pr%"ess%r: 1It’s De"iite.y A E9a##erati%’ 4%r A Au,it Assistat T% C.ai- Their 8%$ 0as T% L%%k 4%r Ie""iciecies+ 0aste A, 4rau,6 “/Bheentry level audit assistant is kind + like a 0+pher,/ said Charles @ee a pr+ess+r at the Jraduate-ch++l + 3usiness as -tan+rd University and a +rmer seni+r mana0er 1ith the acc+untin0 irmKPMJ. 2He 1+uld be 0iven a 0reen pencil and t+ld t+ check a series + numbers. Bhat/s a very ;uni+r p+siti+n./ F Pr+ess+r @ee a0reed sayin0 2it/s deinitely an e4a00erati+n/ +r an auditassistant t+ claim their ;+b 1as t+ l++k +r ineiciencies, 1aste and raud. 3+th pr+ess+rs said in a

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e1 rare instances an audit+r mi0ht stumble +nt+ s+methin0 that mi0ht seem suspici+us, but they 1+uld then ;ust pass the in+rmati+n al+n0 t+ s+me+ne else in the irm." (8im 7e*ede, “Bhe Makin0 O Patrick

Murphy," C3- Miami, $%%$')

MURPHY LIED A&!UT HIS &USINESS EPERIENCE

 (n )une *+,-. &he &ampa #ay &imes /uestioned Murphy0s 1ole (n &he #P 2il Spill Clean %p

I 8ue '()*+ The &ampa #ay &imes =uesti%e, Murphy’s R%.e I The &P !i. Spi..C.eaup

&ampa #ay &imes Hea,.ie: 1Seate Ca,i,ate Patrick Murphy T%uts &P !i. C.eaup 0%rk+ &ut His Rec%r, Raises =uesti%s3 (!le4 @eary, “-enate Candidate Patrick Murphy B+uts 3P Oil Cleanup >+rk, 3ut

His ec+rd aises uesti+ns," "ampa %ay "imes, #$%$')

Murphy C.ai-e, That He =uit His 8%$ A, Starte, A E2ir%-eta. Ser2icesC%-pay T% C.ea Up A"ter The &P !i. Spi.. I The 7u." !" Me9ic%6 “3P +il 0ushed in theJul + Me4ic+ in sprin0 %9'9, m+tivatin0 Patrick Murphy t+ uit his ;+b as an acc+untant andembark +n a missi+n t+ pr+tect the *l+rida Keys, 1here heLd 0r+1n up. 2I+ +ne d+1n there 1as

talkin0 ab+ut 1hat they 1ere 0+in0 t+ d+ t+ clean up +r even be prepared +r this +il,/ Murphy said in a8anuary %9'& televisi+n intervie1, ;ust ater he had been s1+rn in as a member + C+n0ress. Bh+u0h+il never reached the Keys, Murphy has used the e4perience t+ cast himsel as an entrepreneur 1ithan envir+nmental c+nscience. 2<mmediately +ll+1in0 the 3P +il spill, C+n0ressman Murphy spent si4m+nths in the Jul + Me4ic+ leadin0 cleanup e+rts 1ith his small business, C+astal Envir+nmental-ervices,/ reads his +icial H+use 1ebsite." (!le4 @eary, “-enate Candidate Patrick Murphy B+uts 3P Oil Cleanup >+rk, 3ut His

ec+rd aises uesti+ns," "ampa %ay "imes, #$%$')

=uesti%s Are &ei# Raise, As T% 10hether Murphy E9a##erate, His R%.e I TheCatastr%phe63 “3ut a revie1 raises uesti+ns + 1hether Murphy e4a00erated his r+le in thecatastr+phe." (!le4 @eary, “-enate Candidate Patrick Murphy B+uts 3P Oil Cleanup >+rk, 3ut His ec+rd aises uesti+ns," "ampa %ay "imes, 

#$%$')

•  A Ti-e.ie !" E2ets Pr%2i,e, &y Murphy’s Ca-pai# C%tra,icts The !""icia. St%ryI Murphy’s &i%#raphy6 “>hile MurphyLs bi+ says he spent 2si4 m+nths in the Jul + Me4ic+leadin0 cleanup e+rts,/ a timeline pr+vided by his campai0n c+ntradicts that. <t states he m+vedt+ @+uisiana in May 2and started l++kin0 +r +pp+rtunities t+ 0et inv+lved in the cleanup e+rt/ and be0an cleanup in 8uly. 3ut it als+ says C+astal Envir+nmental -ervices did n+t 0et the c+ntractsuntil 2early !u0ust/ and ceased +perati+ns in 2late -eptember./ Bhe campai0n said dispersantscaused +il t+ sink, 2makin0 the 1+rk + +il skimmers nearly imp+ssible./ -tate rec+rds sh+1 C+astalEnvir+nmental -ervices 1as inc+rp+rated in early !u0ust %9'9, 1ith MurphyLs ather, the builderB+m Murphy 8r., listed as +ne + the direct+rs." (!le4 @eary, “-enate Candidate Patrick Murphy B+uts 3P Oil Cleanup >+rk

3ut His ec+rd aises uesti+ns," "ampa %ay "imes, #$%$')

 At The Ti-e+ Murphy’s Ca-pai# Re"use, T% Make Pu$.ic The C%tracts The C%asta.

E2ir%-eta. Ser2ices Recei2e,

Murphy’s Ca-pai# Re"use, T% Make Pu$.ic The C%tracts The C%-pay Recei2e,+ A, 0%’t Characteri>e H%/ Much !i. Murphy’s C%-pay C.eae, Up !r H%/ MuchThe C%-pay Eare,6 “His campai0n reuses t+ make public c+ntracts he says he secured t+ cleanup +il, +r t+ characteriGe h+1 much +il the c+mpanyLs skimmers cleaned up and h+1 much the irmearned." (!le4 @eary, “-enate Candidate Patrick Murphy B+uts 3P Oil Cleanup >+rk, 3ut His ec+rd aises uesti+ns," "ampa %ay "imes, 

#$%$')

• Murphy’s Ca-pai# C.ai-e, C%asta. E2ir%-eta. Ser2ices 1Ac<uire, T/%Su$c%tracts T% Per"%r- NearBSh%re Ski--i# !perati%s I L%uisiaa63 “2PatrickLsc+mpany acuired t1+ subc+ntracts t+ per+rm near6sh+re skimmin0 +perati+ns in @+uisiana,/

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sp+kesman 8+shua Karp 1r+te in an email t+ the "ampa %ay "imes. 2C+ntracts t+ skim +il 1ere allsubc+ntracts +ri0inatin0 1ith 3P, 1h+ unded the skimmin0 cleanup +perati+n. Bhese arepr+prietary business d+cuments bet1een multiple private c+mpanies./" (!le4 @eary, “-enate Candidate Patrick

Murphy B+uts 3P Oil Cleanup >+rk, 3ut His ec+rd aises uesti+ns," "ampa %ay "imes, #$%$')

C#S$ Miami Found &hat Murphy “Was 'ever A Small #usiness 23ner! 

Murphy 0as 1Ne2er A S-a.. &usiess !/er3

 IDE!: C&S ? Mia-i: 14irst It Is N%/ C.ear+ Murphy 0as N%t A S-a.. &usiess!/er63 EPOBE: “!lth+u0h Murphy said he 1+uld be happy t+ turn +ver th+se d+cumentsdurin0 +ur intervie1 in -eptember, 1hat +ll+1ed 1ere 1eeks and m+nths + ne0+tiati+ns 1ith hiscampai0n sta. !s a private c+mpany, Murphy 1as under n+ +bli0ati+n t+ release anythin0.Ultimately, the campai0n all+1ed C3- Ie1s t+ revie1 c+pies + the c+ntracts, but +nly i 1e a0reedn+t t+ name the c+mpanies 1h+ hired them +r the d+llar am+unts + the c+ntracts. *irst it is n+1clear, Murphy 1as n+t a small business +1ner. C+astal Envir+nmental 1as c+ntr+l and inanced byMurphyLs atherLs c+mpany, C+astal C+nstructi+n. 3ut perhaps m+st imp+rtant, neither PatrickMurphy n+r C+astal Envir+nmental -ervices 1ere a1arded a sin0le c+ntract t+ clean up +il in theJul." EP. MUPH?: “-everal." (C3-6Miami, $%%$') Min &:&#6:%9

C&S? Mia-i: Murphy 10as Ne2er A S-a.. &usiess !/er63 “! C3- Ie1s investi0ati+nint+ Murphy/s hist+ry as b+th a CP! and a sel6described small business +1ner, h+1ever, sh+1sMurphy has in s+me cases e4a00erated his e4perience and in +ther instances made claims that 1eremisleadin0 +r +utri0ht alse. *+r instance, he has never 1+rked a day in his lie as a Certiied Public !cc+untant. !nd he 1as never a small business +1ner." (8im 7e*ede, “Bhe Makin0 O Patrick Murphy," C3- Miami,

$%%$')

 Murphy Was 'ever A3arded Any Contra"ts &o Clean %p 2il (n &he 4ul5 

Murphy 0as Ne2er A/ar,e, A Si#.e C%tract T% C.ea Up !i. A"ter The &P Spi..

 IDE!: C&S ? Mia-i: 1&ut Perhaps M%st I-p%rtat+ Neither Patrick Murphy N%rC%asta. E2ir%-eta. Ser2ices 0ere A/ar,e, A Si#.e T% C%tract C.ea Up !i. IThe 7u."63 EPOBE: “!lth+u0h Murphy said he 1+uld be happy t+ turn +ver th+se d+cumentsdurin0 +ur intervie1 in -eptember, 1hat +ll+1ed 1ere 1eeks and m+nths + ne0+tiati+ns 1ith hiscampai0n sta. !s a private c+mpany, Murphy 1as under n+ +bli0ati+n t+ release anythin0.Ultimately, the campai0n all+1ed C3- Ie1s t+ revie1 c+pies + the c+ntracts, but +nly i 1e a0reedn+t t+ name the c+mpanies 1h+ hired them +r the d+llar am+unts + the c+ntracts. *irst it is n+1 clearthat Murphy 1as n+t a small business +1ner. C+astal Envir+nmental 1as c+ntr+l and inanced byMurphyLs atherLs c+mpany, C+astal C+nstructi+n. 3ut perhaps m+st imp+rtant, neither PatrickMurphy n+r C+astal Envir+nmental -ervices 1ere a1arded a sin0le c+ntract t+ clean up +il in theJul. H+1 many c+ntracts did y+u end up 0ettin0=" EP. MUPH?: “-everal." (C3-6Miami, $%%$') Min &:&#6

:%9

Neither Patrick Murphy N%r C%asta. E2ir%-eta. Ser2ices 0ere A/ar,e, A Si#.eC%tract 4%r !i. C.ea Up I The 7u." !" Me9ic%6 “Bhe m+st si0niicant revelati+n, h+1ever, isthat neither Patrick Murphy n+r C+astal Envir+nmental -ervices 1ere a1arded a sin0le c+ntract t+clean up +il in the Jul." (8im 7e*ede, “Bhe Makin0 O Patrick Murphy," C3- Miami, $%%$')

Murphy &%u#ht A &usiess That A.rea,y Ha, T/% C%tracts 4%r !i. C.ea Up

 IDE!: Murphy A, His 4ather &%u#ht A &usiess That A.rea,y Ha, T/% C%tracts4%r !i. C.ea Up+ &ut The C%ast 7uar, Ca..e, !"" !perati%s Sh%rt.y A"ter ThePurchase6 EPOBE: “3ut rather than build a business r+m scratch, Murphy, 1ith his ather/shelp, b+u0ht a business that 1as already d+in0 1+rk here in the Jul + Me4ic+. On !u0ust th,C+astal Envir+nmental b+u0ht Ie1 Orleans6based, Crescent -, 1hich had t1+ c+ntracts +r +il

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cleanup. Un+rtunately +r Murphy, n+t l+n0 ater he t++k c+ntr+l + the +il skimmin0 business, theC+ast Juard called + the +perati+ns./ Murphy 1as let 1ith +ur +il skimmers and n+ 1+rk." (C3-6Miami

$%%$') :%96:#9

The 4irst C%tract+ Date, 8ue '+ '()(+ 0as 4%r N% M%re Tha ;( Days A, 0as A/ar,e, T% The L%uisiaaB&ase, 4ir-+ Crescet SR6 “Bhe irst c+ntract 1as dated 8une %,%9'9. !nd since the Murphy campai0n 1ill n+t all+1 C3- Ie1s t+ release the name + the irm thatissued the c+ntract, 1e/ll reer t+ them as 2C+mpany One./ Under this c+ntract, 2C+mpany One/ hired

an +il skimmin0 c+mpany called Crescent -, a @+uisiana6based irm +1ned by Kenneth Bayl+r3eery. I+1here in this a0reement is C+astal Envir+nmental +r Patrick Murphy menti+ned. Bhec+ntract is +r n+ m+re than 9 days 1ith Crescent bein0 paid an undiscl+sed daily rate." (8im 7e*ede, “Bhe

Makin0 O Patrick Murphy," C3- Miami, $%%$')

• N!TE: Crescet SR 0as !/e, &y Keeth Tay.%r &eery6 “Bhe irst c+ntract 1as dated8une %, %9'9. !nd since the Murphy campai0n 1ill n+t all+1 C3- Ie1s t+ release the name +the irm that issued the c+ntract, 1e/ll reer t+ them as 2C+mpany One./ Under this c+ntract,2C+mpany One/ hired an +il skimmin0 c+mpany called Crescent -, a @+uisiana6based irm +1ned by Kenneth Bayl+r 3eery. I+1here in this a0reement is C+astal Envir+nmental +r Patrick Murphymenti+ned. Bhe c+ntract is +r n+ m+re than 9 days 1ith Crescent bein0 paid an undiscl+seddaily rate." (8im 7e*ede, “Bhe Makin0 O Patrick Murphy," C3- Miami, $%%$')

The Sec%, C%tract+ Date, 8u.y (+ '()(+ A.s% A/ar,e, T% Crescet SR+ 0as T%Per"%r- !i. Ski--i# 0%rk I The 7u." As Nee,e,6 “Bhe sec+nd c+ntract is dated 8uly &9,%9'9 1ith 2C+mpany B1+,/ and it is als+ 1ith Crescent -, t+ per+rm +il skimmin0 1+rk in the Julas needed. Once a0ain, neither C+astal Envir+nmental n+r Patrick Murphy/s name appears any1herein the a0reement. Bhe +nly name listed is Crescent/s +1ner, Kenneth Bayl+r 3eery." (8im 7e*ede, “Bhe Makin0

O Patrick Murphy," C3- Miami, $%%$')

D%cu-ets Sh%/ That ! Au#ust ;+ '()(+ C%asta. E2ir%-eta. Ser2ices &%u#htCrescet SR 4%r A U,isc.%se, A-%ut !" M%ey6 “Bhe Murphy campai0n then pr+vided athird d+cument, sh+1in0 that +n !u0ust , %9'9, C+astal Envir+nmental -ervices b+u0ht Crescent -+r an undiscl+sed am+unt + m+ney. -i0nin0 the transer a0reement +n behal + C+astal

Envir+nmental 1asn/t Patrick Murphy, but rather 7aniel >hiteman. >h+ is 7aniel >hiteman= >hiteman is the President + C+astal Envir+nmental." (8im 7e*ede, “Bhe Makin0 O Patrick Murphy," C3- Miami,

$%%$')

• The Tras"er A#ree-et 0as Si#e, &y Daie. 0hite-a+ 0h% Is Presi,et !"C%asta. E2ir%-eta.+ A, N%t Patrick Murphy6 “Bhe Murphy campai0n then pr+vided athird d+cument, sh+1in0 that +n !u0ust , %9'9, C+astal Envir+nmental -ervices b+u0ht Crescent- +r an undiscl+sed am+unt + m+ney. -i0nin0 the transer a0reement +n behal + C+astalEnvir+nmental 1asn/t Patrick Murphy, but rather 7aniel >hiteman. >h+ is 7aniel >hiteman= >hiteman is the President + C+astal Envir+nmental." (8im 7e*ede, “Bhe Makin0 O Patrick Murphy," C3- Miami,

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Se2e 0eeks A"ter C%asta. &%u#ht Crescet SR+ The C%ast 7uar, Ca..e, !"" !i.Ski--i# !perati%s

Se2e 0eeks A"ter C%asta. &%u#ht Crescet SR+ The C%ast 7uar, Ca..e, !"" !i.Ski--i# !perati%s6 “-even 1eeks ater C+astal Envir+nmental -ervices b+u0ht Crescent, theC+ast Juard called + +il skimmin0 +perati+ns in the Jul. !s a result, C+astal Envir+nmental 1ass++n +ut + 1+rk." (8im 7e*ede, “Bhe Makin0 O Patrick Murphy," C3- Miami, $%%$'

Murphy’s Ca-pai# C.ai-e, That Murphy De2e.%pe, P.as 4%r !i. Ski--ers+ &ut TheC%-pay’s 4%u,er Sai, He Starte, The Ski--er C%cept &e"%re He Met Murphy 

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Murphy’s Ca-pai# C.ai-e, That Murphy’s I2%.2e-et 0ith Crescet SR Starte, I8ue '()(+ Thr%u#h 1A I"%r-a. Partership+3 A, It 0as Murphy 0h% De2e.%pe,P.as 4%r The Crescet !i. Ski--i# !perati%6 “Bhe Murphy campai0n, h+1ever, saysPatrick Murphy 1as inv+lved 1ith Crescent - thr+u0h, 1hat it termed 2an in+rmal partnership/ thatstarted in 8une. Bhe campai0n maintains it 1as Murphy 1h+ devel+ped the plans +r the Crescent +ilskimmin0 +perati+n." (8im 7e*ede, “Bhe Makin0 O Patrick Murphy," C3- Miami, $%%$')

Murphy’s Ca-pai# Sai, That Murphy’s C%tri$uti%s 0ere Ite#ra. T% C%asta. A, Crescet’s Success &ecause He He.pe, Desi# A Ne/ Type !" !i. Ski--er6 “Bhecampai0n said Murphy/s c+ntributi+ns 1ere inte0ral t+ C+astal and Crescent/s success because hehelped desi0n a ne1 type + +il skimmer that c+uld c+llect +il three eet bel+1 the surace. !ls+, thene1 skimmers 1ere bein0 specially made s+ they c+uld be placed +n trailers and transp+rteduickly t+ *l+rida in case the +il spread int+ the l++p current." (8im 7e*ede, “Bhe Makin0 O Patrick Murphy," C3-

Miami, $%%$')

The 4%u,er !" Crescet SR Sai, He Starte, The !i. Ski--i# C%cept &e"%re He MetMurphy6 “Bhe Murphy campai0n, h+1ever, says Patrick Murphy 1as inv+lved 1ith Crescent -thr+u0h, 1hat it termed 2an in+rmal partnership/ that started in 8une. Bhe campai0n maintains it 1asMurphy 1h+ devel+ped the plans +r the Crescent +il skimmin0 +perati+n. eached by ph+ne, 3eery

said he cann+t remember 1hen he irst met Patrick Murphy but he 1as certain + +ne thin0. 2< startedthe c+ncept be+re < met Patrick,/ 3eery said. 3eery said he launched Crescent - immediately aterthe +il spill be0an. ! liel+n0 resident + @+uisiana, 3eery said he helped in the cleanup +ll+1in0Hurricane Katrina in %99# and 1anted t+ 0et inv+lved a0ain. He said he started 1ith +ne b+at, a navaskimmer built in the -eventies 1hich he dubbed Crescent '. 2Bhe naval skimmer 1as +ld but it did d+a 0++d ;+b,/ 3eery recalled." (8im 7e*ede, “Bhe Makin0 O Patrick Murphy," C3- Miami, $%%$')

• &erry Sai, That A Tea- !" E#ieers 4r%- C%asta. He.pe, Desi# The Ski--ers+&ut He 0as’t Sure I" They 0ere E-p.%ye, &y C%asta. C%structi% !r C%asta.E2ir%-eta. Ser2ices6 “3eery 1as l++kin0 t+ add a sec+nd b+at and 1as l++kin0 t+ buy ane1 vessel r+m a shipyard in C+nnecticut. 3eery said he 1as intr+duced t+ Murphy thr+u0h a b+at builder. 2>e 1ere c+nnected t+ each +ther by the shipyard,/ he said. 3eery said there 1as a

2team/ + en0ineers r+m C+astal that 1+rked 1ith the 7ereckt+r desi0ners +n c+min0 up 1ith ane1 line + +il skimmers. He said he 1asn/t sure i the en0ineers 1ere empl+yed by C+astalEnvir+nmental +r C+astal C+nstructi+n. 2< deinitely laid d+1n a dep+sit +n a b+at,/ 3eery recalled.He 1as n+t certain + the date, but likely s+metime ar+und 8une." (8im 7e*ede, “Bhe Makin0 O Patrick Murphy,"

C3- Miami, $%%$')

Coastal 6nvironmental Servi"es Has Wiped 2ut (ts Pro5its #y Storing &he Skimmers And Loses Money 6very Month

Murphy Re.ease, A !eBPa#e D%cu-et That Di, N%t 7i2e 1Ay Picture !" The4iacia. Hea.th !r !perati%s3 !" C%asta. E2ir%-eta.

 A"ter Pr%-isi# T% Pr%2i,e D%cu-ets That Sh%/ The Pr%"ita$i.ity !" C%asta.E2ir%-eta.+ Murphy’s Ca-pai# Ha,e, !2er A !eBPa#e D%cu-et That Di, N%t7i2e 1Ay Picture !" The 4iacia. Hea.th !r !perati%s63 “Bhe Murphy campai0n said they 1+uld pr+vide d+cuments sh+1in0 the pr+itability + C+astal Envir+nmental. H+1ever, 1hat theypr+vided t+ C3- Ie1s 1as a sin0le sheet + paper 1ith three numbers +n it evenue, Operatin0C+sts, Operatin0 Pr+it. 2<t/s n+t a inancial statement, it really d+esn/t 0ive y+u any picture + theinancial health +r +perati+ns + the c+mpany,/ said 8esse -in0er, a CP! certiied in inancial +rensicsand 1h+ 1as hired by C3- Ie1s t+ revie1 the d+cuments pr+vided by the campai0n. Bhe Murphycampai0n said C+astal Envir+nmental has n+t 0enerated any revenue since +il skimmin0 +perati+nsceased in late -eptember and early Oct+ber. Bhe campai0n said C+astal Envir+nmental -ervices has

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n+t 0enerated a d+llar in revenue since the end + %9'9." (8im 7e*ede, “Bhe Makin0 O Patrick Murphy," C3- Miami,

$%%$')

C%asta. E2ir%-eta. Has Spet M%re ! St%ri# The Ski--ers Tha It C.ai-s T%Ha2e Ma,e I Pr%"it Duri# '()(

!2er The Past 4i2e Years+ C%asta. E2ir%-eta. Has Spet M%re ! St%ri# TheSki--ers Tha It C.ai-s T% Ha2e Ma,e I Pr%"it Duri# '()(6 “C+astal Envir+nmental has

the +ur +il skimmers in st+ra0e in @+uisiana and !labama in case an+ther disaster strikes. Bhecampai0n pr+vided inv+ices t+ sh+1 the b+ats are in st+ra0e. <r+nically, revie1in0 the inv+ices, thec+st + st+rin0 the vessels +r the last ive years is m+re than the c+mpany claims t+ have made inpr+it durin0 %9'9. <n +ther 1+rds, it appears C+astal 1as n+t pr+itable. <t likely l+st m+ney. !nd itc+ntinues t+ l+se m+ney t+ this day." (8im 7e*ede, “Bhe Makin0 O Patrick Murphy," C3- Miami, $%%$')