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Greenwich Investment Firm Founder Stole Millions In Clients' Cash: Feds

A 49-year-old Connecticut man faces potentially decades in prison after he allegedly defrauded and stole $3.5 million of his client's money for years, federal authorities said. 

A man accused of scamming clients out of millions of dollars through his hedge fund faces decades in prison if convicted. 

A man accused of scamming clients out of millions of dollars through his hedge fund faces decades in prison if convicted. 

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Justin C. Murphy, 49, of Stamford, is charged with 15 counts of wire fraud, five counts of money laundering, and three counts of tax evasion, the US Attorney for Connecticut announced on Tuesday, Nov. 5. 

Murphy ran the Greenwich-based investment firm Mara. The company also went by Mara Investment Group, LLC, Mara Investment Management LP, and Mara Investments Global Management LLC. 

Federal investigators said Murphy told investors he ran a hedge fund that used a quantitative strategy that balanced long and short positions in securities and was low risk. However, between 2016 and September 2022, Murphy is accused of making far riskier investments than he let on, diverting a lot of his clients' money into his own pocket, and lying to investors about how their accounts were performing, the prosecutor said. 

Prosecutors believe Murphy stole $3.5 million in investor cash to pay for his personal life and fund a relative's startup company. 

The SEC said Murphy, through Mara, controlled $6.6 million in investments from clients at one point, but as that amount began to dwindle, prosecutors say he faked documents to make it appear as if his investments were paying off. That included federal tax forms that falsely claimed business income that his clients would have to pay taxes on. 

Murphy was arrested in Brazil in December 2023. He was extradited to the US on Friday, Nov. 1, and pleaded not guilty to the charges, federal investigators said. 

He was released after posting a $250,000 bond, authorities said. 

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