Man Sentenced To Prison For Greenwich Investment Fraud Scheme: Feds

GREENWICH, CT — A Greenwich investment group operator was sentenced this week to 54 months in prison for an investment fraud scheme that netted him over $3.4 million, according to an announcement from David X. Sullivan, United States Attorney for the District of Connecticut.

Justin C. Murphy, 50, of Stamford, received his sentence from U.S. District Judge Victor A. Bolden in New Haven on Wednesday. The sentence also includes three years of supervised release.

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, Sullivan said, noting 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, Sullivan said, 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 Sullivan, Murphy stole approximately $3,465,812 in investor funds through this scheme and used the money to pay for personal expenses, to purchase a personal stake in his relative’s startup company, and to fund nearly a year of living in luxury hotels in Brazil while avoiding investor complaints and lawsuits.

Murphy was ordered 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 scheme, Sullivan said.

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 of this year, 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.