NEW HAVEN – A U.S. district judge sentenced a Stamford man to 54 months in prison and three years’ supervised release for heading up a purported Greenwich-based hedge fund that swindled investors out of more than $3.4 million, according to David Sullivan, U.S. Attorney for the District of Connecticut.
Justin Murphy, 50, of Stamford, was sentenced by U.S. District Judge Victor A. Bolden in New Haven on Wednesday, Sept. 3 for operating an investment fraud scheme. Murphy stole approximately $3,465,812 in investor funds through this scheme, according to court documents. He used the funds to pay for personal expenses, to purchase a personal stake in his relative’s startup company, and then to fund nearly a year of living in luxury hotels in Brazil while avoiding investor complaints and lawsuits.
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 and used a quantitative strategy that balanced long and short positions in securities.
Between approximately 2016 and September 2022, Murphy
- Defrauded investors by pursuing a much riskier investment strategy than he told investors
- Diverted substantial investor funds for his own personal use and benefit
- Represented 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
- Provided investors with federal tax forms that falsely reported business income upon which investors would be required to pay tax.
Judge Bolden ordered Murphy to pay restitution of $3,782,154, which includes losses to an additional investor who had placed money with Murphy prior to the beginning of the charged scheme.
Murphy was arrested in Brazil on Dec. 6, 2023, and was detained for nearly 11 months while awaiting extradition to the U.S. On April 29, 2025, he pleaded guilty to one count of wire fraud and one count of money laundering.
Murphy, who was released on a $250,000 bond on Nov. 1, 2024, is required to report to prison on Oct. 15.
This investigation was conducted by the FBI and the IRS – Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney David E. Novick.
