SEC Charges Investment Advisor Justin Murphy for $3.4 Million Investor Funds Misappropriation
From the desk of Jim Eccleston at Eccleston Law
The Securities and Exchange Commission (SEC) has charged Justin Murphy and his investment management firm, Mara Investments, LLC, for fraudulent misappropriation of approximately $3.4 million of investor assets.
Murphy, a former resident of Greenwich, Connecticut, allegedly induced multiple individuals to invest around $6.6 million in a private investment fund, Mara Investment Management LP, controlled by Mara Investments. According to the SEC, despite representing conservative stock trading and consistent profits, Murphy diverted most of the investors' funds for unauthorized business, personal expenses, and to finance a relative's company.
The SEC contends that Murphy concealed the fraud when the depleted assets failed to generate profits by providing investors with falsified account statements and inaccurate tax documents. The complaint charges Murphy and Mara Investments with violating various securities laws and seeks permanent injunctions, disgorgement with prejudgment interest, and civil penalties. In a parallel action, the U.S. Attorney's Office for the District of Connecticut has brought criminal charges against Murphy.
Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.
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