NEW HAVEN – The owner of a Greenwich investment business pled guilty today in U.S. District Court in New Haven to offenses stemming from a $3.45 million investment fraud scheme, according to Marc H. Silverman, acting U.S. Attorney for the District of Connecticut.
Justin Murphy, 50, of Stamford, made the plea before Judge Victor A. Bolden in New Haven.
According to court documents and statements made in court, Murphy owned and operated Greenwich-based Mara Investment Group LLC, also known as Mara Investment Management LP and Mara Investments Global Management LLC, which Murphy purported to be a hedge fund that solicited and accepted investments.
The court documents described how between approximately 2016 and September 2022, Murphy defrauded investors by pursuing a much riskier investment strategy than he told investors; diverting substantial investor funds for his own personal use and benefit; representing to investors that their invested funds were performing more favorably than was, in fact, the case, including providing investors with account statements that falsely representing their account balances; and providing investors with federal tax forms that falsely reported business income upon which investors would be required to pay tax.
Murphy stole approximately $3,465,812 in investor funds through this scheme and used the funds to pay for personal expenses and to purchase a personal stake in his relative’s startup company.
Murphy pleaded guilty to one count of wire fraud, which carries a maximum term of imprisonment of 20 years, and one count of money laundering, which carries a maximum term of imprisonment of 10 years. A sentencing date is not scheduled.
Murphy was arrested in Brazil on Dec. 6, 2023, and was detained for nearly 11 months while awaiting extradition to the U.S. He has been released on a $250,000 bond since Nov. 1, 2024.
This investigation has been conducted by the FBI and the IRS – Criminal Investigation Division. The Justice Department’s Office of International Affairs and Brazilian authorities provided assistance. The case is being prosecuted by Assistant U.S. Attorney David E. Novick.
