HARTFORD, Conn — A Stamford man, who had to be extradited from Brazil, has been indicted in connection with an alleged investment fraud scheme.
Justin Murphy, 49, of Stamford, was charged Friday with 15 counts of wire fraud, an offense that carries a maximum term of imprisonment of 20 years on each count; five counts of money laundering, an offense that carries a maximum term of imprisonment of 10 years on each count; and three counts of tax evasion, an offense that carries a maximum term of imprisonment of five years on each count.
It is alleged that Murphy stole approximately $3.5 million 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.
The indictment was returned on September 22, 2022. Murphy, who was extradited from Brazil, appeared federal court in Hartford, and pleaded not guilty to the charges, and was released on a $250,000 bond. Murphy had been detained in Brazil since his arrest on December 6, 2023.
Officials said Murphy owned and operated Greenwich-based Mara Investment Group, LLC, also known as Mara Investment Management LP and Mara Investments Global Management LLC (“Mara”), 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.
According to the indictment, between 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.
Doug Stewart is a Senior Digital Content Producer at FOX61 News. He can be reached at dstewart@fox61.com.
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