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Published March 28, 2012, 12:09 PM

Prosecutors appeal ruling on defendant's release

FARGO, N.D. (AP) — Federal prosecutors say a man arrested in North Dakota for allegedly participating in an East Coast Ponzi scheme should not be released to the custody of two friends.

FARGO, N.D. (AP) — Federal prosecutors say a man arrested in North Dakota for allegedly participating in an East Coast Ponzi scheme should not be released to the custody of two friends.

Michael Murphy, of Deep Haven, Minn., is one of four men indicted in North Carolina on investment fraud conspiracy charges. Authorities say the defendants bilked investors out of $40 million.

Court documents show that Murphy was seeking treatment at a Fargo psychiatric hospital when he was arrested last week. He had previously failed to appear for a hearing in North Carolina.

Prosecutors are appealing a ruling by a federal magistrate judge that would allow Murphy to be transported to North Carolina by two friends.

The government says Murphy is a serious flight risk and poses a danger to himself and others.

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