Marc H. Silverman, Acting United States Attorney for the District of Connecticut, has reported that Justin C. Murphy, aged 50 and a resident of Stamford, entered a guilty plea to charges related to an investment fraud scheme. This plea was made before U.S. District Judge Victor A. Bolden in New Haven.
Murphy operated Mara Investment Group, LLC, known by several other names, and falsely presented it as a hedge fund using a quantitative investment strategy. Between 2016 and September 2022, Murphy engaged in fraudulent activities including misleading investors about the risk level of investments, misusing funds for personal expenses, and providing false financial statements and tax documents.
The fraudulent activities resulted in the theft of approximately $3,465,812 from investors, which Murphy used for personal expenditures and to invest in a relative's startup. He pleaded guilty to one count of wire fraud, with a potential sentence of 20 years, and one count of money laundering, which could result in a 10-year sentence. A sentencing date is yet to be determined.
Murphy was apprehended in Brazil on December 6, 2023, and was held for nearly 11 months pending extradition to the United States. He has been out on a $250,000 bond since November 1, 2024.
The investigation involved the Federal Bureau of Investigation, the Internal Revenue Service – Criminal Investigation Division, the Justice Department’s Office of International Affairs, and Brazilian authorities. The prosecution is being led by Assistant U.S. Attorney David E. Novick.
