William J. Murphy, 75, of Gray, pleaded guilty Friday in U.S. District Court to making false entries in credit union records.

According to U.S. Attorney Thomas E. Delahanty II, the defendant was the chief financial officer, a loan officer, the bookkeeper and an employee of the Portland Police Department Federal Credit Union, a federal credit union whose deposits were federally insured. In that capacity, the defendant had access to the credit union’s bank accounts and was responsible for drafting and auditing the general ledger and preparing and submitting certified quarterly call reports to the National Credit Union Administration.

Between 2009 and 2013, the defendant filed false quarterly call reports in which he overstated the credit union’s net worth to make it appear that it was sufficiently capitalized, when in reality it was not sufficiently capitalized, Delahanty said. As a result, on Dec. 1, 2014, the National Credit Union Administration facilitated the acquisition of the credit union by a much larger federal credit union.

The investigation was conducted by the Federal Bureau of Investigation. Murphy faces up to 30 years in prison, five years of supervised release and a $1 million fine. He will be sentenced after the completion of a pre-sentence investigation report by the U.S. Probation Office, Delahanty said.