60°
Justin C. Murphy, 50, of Stamford, pleaded guilty in federal court to wire fraud and money laundering, the US Attorney for Connecticut said. He faces up to 30 years in prison.
Prosecutors say he misled clients, faked financial statements, and used their money to fund his lifestyle, including investing in a relative’s startup.
Murphy owned and operated Mara Investment Group, also known by similar names, claiming it was a hedge fund that used a smart, balanced strategy to make money in the markets. But federal investigators say that from 2016 through 2022, Murphy did the opposite of what he told investors.
Court documents show that he used much riskier strategies than he admitted, took large sums of investor money for himself, and sent out fake account statements and tax forms. The false documents made it look like the fund was doing well when it wasn't—and even reported income that never existed, leading some investors to pay taxes on money they never earned, the prosecutor said.
In total, Murphy took about $3.4 million from investors. That money, according to federal officials, went to pay for personal expenses and buy into a family member’s new business.
The scheme ended after he was arrested in Brazil in late 2023. He spent nearly a year behind bars there before being brought back to the US, the prosecutor said.
He’s been out on a $250,000 bond since last fall. A sentencing date has not yet been set.
Click here to follow Daily Voice New Canaan and receive free news updates.
