A Stamford man was sentenced to 54 months in federal prison for operating an investment fraud scheme that stole more than $3.4 million from investors, according to the U.S. Attorney for the District of Connecticut.
Justin C. Murphy, 50, owned and operated Mara Investment Group, LLC, which he presented as a hedge fund based in Greenwich. The business also used the names Mara Investment Management LP and Mara Investments Global Management LLC. Court documents show that between 2016 and September 2022, Murphy misled investors about his investment strategy, took significant investor funds for personal use, and provided false account statements and tax forms to clients.
Murphy diverted funds to pay personal expenses, invested in a relative’s startup company, and financed nearly a year living in luxury hotels in Brazil while avoiding complaints and lawsuits from investors.
Judge Victor A. Bolden ordered Murphy to pay $3,782,154 in restitution. This amount includes losses suffered by an additional investor who had given money to Murphy before the charged period of the scheme.
Murphy was arrested in Brazil on December 6, 2023. He spent almost 11 months detained before being extradited to the United States. On April 29, 2025, he pleaded guilty to one count each of wire fraud and money laundering.
Murphy had been released on a $250,000 bond on November 1, 2024. He is required to report to prison on October 15.
The investigation was 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 assisted with the case. Assistant U.S. Attorney David E. Novick prosecuted the matter.
“David X. Sullivan, United States Attorney for the District of Connecticut,” announced these details.
