A Naugatuck resident has been sentenced to 18 months in federal prison for operating an investment fraud scheme. David X. Sullivan, United States Attorney for the District of Connecticut, announced that Rafael Muzzi, 28, a citizen of Brazil residing in Naugatuck, received the sentence from U.S. District Judge Stefan R. Underhill in Bridgeport.
Court documents and statements revealed that during 2017 and 2018, Muzzi used two entities he formed—Solace Investments LLC and Asseno LLC—to induce investors to provide him with funds. He claimed these funds would be used for trading currencies in foreign exchange markets through a software program he said he developed. Muzzi told victims his software had a feature to stop trading if losses reached a certain level, which he said would minimize risk.
Instead of investing the money as promised, Muzzi diverted a significant portion of the funds for personal use and to pay other investors. The total amount stolen from 21 victim-investors was $579,925.28.
Muzzi also sent victims false monthly account statements overstating their returns and balances, leading some to invest additional money.
After complaints from victims, the Connecticut Department of Banking investigated Muzzi’s actions and found violations of state securities laws by both Muzzi and Solace Investments. The department ordered restitution to victims and fined Muzzi $300,000.
On September 6, 2020, Muzzi traveled to Brazil and did not return. A federal grand jury indicted him on August 23, 2022 on charges of fraud and money laundering. He was arrested in Panama on April 1, 2023 and later waived his right to contest extradition to the United States. On July 30, 2024 he pleaded guilty to wire fraud.
Judge Underhill ordered full restitution from Muzzi.
Muzzi is currently released on a $150,000 bond and must report to prison on February 11.
The Federal Bureau of Investigation conducted the investigation with assistance from the Connecticut Department of Banking's Securities Division.
U.S. Attorney Sullivan thanked Interpol and Panamanian authorities for their role in apprehending Muzzi as well as the U.S. Department of Justice’s Office of International Affairs for its help securing his arrest and extradition from Panama.
Assistant U.S. Attorneys Conor M. Reardon and Michael S. McGarry prosecuted the case.
