UNITED STATES OF AMERICA
Before the
SECURITIES AND EXCHANGE COMMISSION

SECURITIES EXCHANGE ACT OF 1934
Release No. 46442 / August 30, 2002

ACCOUNTING AND AUDITING ENFORCEMENT
Release No. 1620 / August 30, 2002

ADMINISTRATIVE PROCEEDING
File No. 3-10878

In the Matter of JAMES MURPHY, C.P.A. Respondent

: : : :

ORDER OF SUSPENSION PURSUANT TO RULE 102(e)(2) OF THE COMMISSION'S RULES OF PRACTICE

I.

The Securities and Exchange Commission deems it appropriate to issue an order of forthwith suspension of James Murphy pursuant to Rule 102(e)(2) of the Commission's Rules of Practice [17 C.F.R. § 200.102(e)(2)].1

II.

The Commission finds that:

1. Murphy is a certified public accountant.

2. On June 1, 2000, a judgment of conviction was entered against Murphy in United States v. Pinez, et al, No. 97-10064-JLT, in the United States District Court for the District of Massachusetts, finding him guilty of one count of conspiracy to commit securities fraud and eight counts of securities fraud.

3. As a result of this conviction, Murphy was sentenced to 15 months imprisonment in a halfway house followed by supervised release for a period of three years and ordered to pay restitution in the amount of $149,650,000.

4. On April 29, 2002, judgment was entered in SEC v. Murphy, et al., No. 00-11981-PBS, in the United States District Court for the District of Massachusetts, against Murphy (i) enjoining him from violating Section 17(a) of the Securities Act of 1933 and Sections 10(b) and 13(b)(5) of the Exchange Act and Exchange Act Rules 10b-5, 13b2-1, and 13b2-2, and from aiding and abetting violations of Sections 13(a) and 13(b) of the Exchange Act and Rules 12b-20, 13a-1, and 13a-13 thereunder; (ii) prohibiting him from acting as an officer or director of a public company for 10 years; and (iii) ordering him to pay a civil penalty of $150,000 for his violations.

III.

In view of the foregoing, the Commission finds that Murphy has been convicted of a felony within the meaning of Rule 102(e)(2) of the Commission's Rules of Practice.

Accordingly, IT IS ORDERED, that James Murphy is forthwith suspended from appearing or practicing before the Commission pursuant to Rule 102(e)(2) of the Commission's Rules of Practice.

By the Commission.

Jonathan G. Katz
Secretary

______________________________

1	Rule 102(e)(2) provides in pertinent part: "Any ... person who has been convicted of a felony or a misdemeanor involving moral turpitude shall be forthwith suspended from appearing or practicing before the Commission."

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