Man Stole Over $3M In Greenwich Investment Fraud Scheme: Feds

GREENWICH, CT — A Greenwich investment group operator on Tuesday pleaded guilty before a U.S. District Court judge to offenses stemming from a fraud scheme that cost investors over $3 million, according to federal officials.

Justin C. Murphy, 50, of Stamford, pleaded guilty before Judge Victor A. Bolden in New Haven to one count of wire fraud, which carries a maximum term of 20 years in prison, and one count of money laundering, an offense that carries a maximum term of 10 years. A sentencing date has not yet been scheduled.

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, Marc H. Silverman, acting United States Attorney for the District of Connecticut said in a news release.

Between approximately 2016 and September 2022, Silverman says 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."

According to Silverman, 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 a relative’s startup company.

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 Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigation Division. The Justice Department’s Office of International Affairs and Brazilian authorities provided assistance.