Greenwich Investment Group Operator Charged With Fraud: Officials

GREENWICH, CT — A Greenwich investment group operator is facing multiple charges after prosecutors say he stole approximately $3.5 million in investor funds.

Justin C. Murphy, 49, of Stamford, pleaded not guilty on Nov. 1 to charges in a 23-count indictment, according to a joint announcement from United States Attorney for the District of Connecticut Vanessa Roberts Avery, Special Agent in Charge of the New Haven Division of the FBI Robert Fuller, and Special Agent in Charge of IRS Criminal Investigation in New England Harry T. Chavis Jr.

A federal grand jury in New Haven returned the indictment on Sept. 22, 2022, and Murphy was extradited to Connecticut from Brazil.

The indictment charges Murphy with 15 counts of wire fraud, an offense that carries a maximum term 20 years in prison on each count; five counts of money laundering, an offense that carries a maximum term of 10 years in prison on each count; and three counts of tax evasion, an offense that carries a maximum term of five years in prison on each count.

Per the extradition agreement with Brazil, the government has agreed not to pursue the tax evasion charges against Murphy, officials said in a news release.

According to the indictment, 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, 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, officials said, such as "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."

The officials noted that according to the indictment, 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.

This investigation is being conducted by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division. The Justice Department’s Office of International Affairs and Brazilian authorities assisted.