A federal grand jury in New Haven has issued a 23-count indictment against Justin C. Murphy, 49, of Stamford, Connecticut, in connection with an alleged $3.5 million investment fraud. Murphy, the founder of Greenwich-based Mara Investment Group, LLC, is accused of defrauding investors by misappropriating funds and providing false account information, according to the U.S. Attorney’s Office for the District of Connecticut.
Operating under several business names—Mara Investment Group, Mara Investment Management LP, and Mara Investments Global Management LLC—Murphy promoted the firm as a hedge fund employing a quantitative strategy to manage securities. However, between 2016 and September 2022, he allegedly used a much riskier approach than promised, diverted investor funds for personal expenses, and acquired a stake in a family member’s startup.
The indictment further alleges that Murphy provided investors with falsified account statements inflating their balances and issued tax documents that inaccurately reported business income, resulting in unwarranted tax liabilities for investors.
Murphy pleaded not guilty to all charges and was released on a $250,000 bond. If convicted, he faces up to 20 years in prison for each wire fraud count, 10 years for each money laundering charge, and five years for each tax evasion charge.
It is important to note that an indictment is only an allegation, and Murphy is presumed innocent unless proven guilty beyond a reasonable doubt.
