A former Greenwich-based investment manager has been sentenced to 54 months in federal prison for operating a fraud scheme that bilked investors out of more than $3.4 million over six years, authorities said.
Justin C. Murphy, 50, of Stamford, was sentenced Sept. 3 by U.S. District Judge Victor A. Bolden in New Haven. He was also ordered to serve three years of supervised release and to pay $3.78 million in restitution to victims.
Murphy operated Mara Investment Group LLC — also doing business as Mara Investment Management LP and Mara Investments Global Management LLC — which he marketed as a “quantitative” hedge fund employing balanced long and short equity positions. However, federal prosecutors said Murphy’s investment strategy was far riskier than what he disclosed to clients.
Between 2016 and September 2022, Murphy deceived investors, diverting substantial investor funds for personal use while providing clients with falsified account statements that overstated their returns, according to authorities.
Further, Murphy issued fraudulent tax forms reporting fictitious business income, forcing investors to pay taxes on non-existent gains, authorities said.
The scheme unraveled as investor complaints mounted and lawsuits were filed. Murphy then fled to Brazil, where he spent nearly a year living in luxury hotels using stolen investor funds, according to prosecutors.
Authorities also say Murphy used the stolen funds to purchase a stake in a relative’s startup company.
Murphy was arrested in Brazil in December 2023. He was detained in the Latin American country for almost 11 months pending extradition to the United States.
He was released on $250,000 bond in November 2024 and pleaded guilty in April 2025 to wire fraud and money laundering charges.
Murphy is scheduled to report to federal prison on Oct. 15.
The case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service Criminal Investigation Division, with assistance from the Justice Department’s Office of International Affairs and Brazilian law enforcement.
