Stamford Man Charged in $3.5M Fraud Scheme with 23-Count Indictment
A federal grand jury in New Haven has indicted Justin C. Murphy, 49, of Stamford, on 23 counts related to an alleged investment fraud scheme, the U.S. Attorney’s Office for the District of Connecticut announced today.
Murphy, who owned and operated the Greenwich-based Mara Investment Group, LLC (also known as Mara Investment Management LP and Mara Investments Global Management LLC), is accused of misappropriating approximately $3.5 million in investor funds between 2016 and September 2022. Instead of using the funds for the hedge fund’s investments, as promised, Murphy allegedly diverted the money to cover personal expenses and acquire a stake in a relative’s startup company.
The indictment claims that Murphy misrepresented his investment strategy, using far riskier tactics than he had led investors to believe. He allegedly issued false account statements to investors, inflating their balances, and provided inaccurate federal tax forms, resulting in investors paying taxes on amounts they didn’t actually earn.
Murphy has pleaded not guilty to the charges and was released on a $250,000 bond. If convicted, he faces up to 20 years in prison for each wire fraud count, up to 10 years for each money laundering charge, and up to five years for each tax evasion count.
It’s important to note that an indictment is merely a formal charge and does not constitute evidence of guilt. Murphy is presumed innocent until proven guilty in court.
