An Illinois farmer has been sentenced to 42 months in federal prison for obtaining approximately $8.4 million in bank loans using false documents. He was also ordered to repay nearly $5 million.
Travis L. Murphy, 55, of Chandlerville, must serve three years of supervised release and pay UMB Bank $4,966,624.01 in restitution, according to WAND.
In 2016, Murphy obtained a $1.762 million line of credit from UMB Bank. To support his application, he allegedly claimed a grain complex had cost about $2.65 million to build, though the actual cost was approximately $986,000. He also submitted false tax returns.
The bank relied on the documents to extend the initial credit and issue additional loans, bringing the total to about $8.4 million. Murphy later sought to discharge the debts through bankruptcy.
The scheme was uncovered during bankruptcy proceedings, with assistance from the U.S. Trustee Program and Chapter 7 trustee Andrew S. Erickson. In a 2020 opinion, Judge Mary P. Gorman denied Murphy’s request to discharge the debts.
A federal grand jury in the Central District of Illinois indicted Murphy on bank fraud charges in 2023. He pleaded guilty in 2025.
At sentencing on September 21, 2026, the court ordered Murphy to repay UMB Bank $4,966,624.01. UMB, headquartered in Kansas City, Missouri, reported about $72.35 billion in assets in the second quarter, according to the Federal Reserve.
