Tr?id=566623520170033&ev=PageView&noscript=1

SEC Charges Investment Advisor Justin Murphy for $3.4 Million Investor Funds Misappropriation

Posted on January 25th, 2024 at 10:37 AM
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.

Tags: eccleston, eccleston law, sec

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

If you are being bothered by the Regulators, call Eccleston Law, you won't regret it.

Rick R.

LATEST NEWS AND ARTICLES

1785949175 Law
August 5, 2026
FINRA Arbitration Panel Orders Arkadios Capital to Pay $2.7 Million in Ponzi Scheme-Related Claim

A Financial Industry Regulatory Authority (FINRA) arbitration panel has ordered Arkadios Capital to pay $2.7 million in damages to an investor who alleged the firm failed to supervise a former registered representative whose father operated a long-running Ponzi scheme, according to InvestmentNews.

1785858278 Law
August 4, 2026
SEC Fines Former LPL Broker $125,000 for Undisclosed Conflicts in Private Securities Offerings

The Securities and Exchange Commission (SEC) has censured a former LPL Financial broker and imposed a $125,000 civil penalty after finding that he failed to disclose conflicts of interest related to private real estate securities offerings that generated nearly $1.5 million in compensation, as reported by AdvisorHub.

1785772777 Law
August 3, 2026
FINRA Launches Review of High-Risk Structured Notes Sales and Supervision

The Financial Industry Regulatory Authority (FINRA) has launched a regulatory sweep examining the sale of high-risk structured products, with particular attention on non-principal protected "worst-of" structured notes, according to AdvisorHub.