Yasuna Murakami, a hedge fund manager who oversaw MC2 Capital Management LLC And MC2 Canada Capital Management LLC, is sentenced to six years in prison for fraud. Prosecutors accused him of defrauding hedge fund investors. Additionally, Murakami, must pay over $10.5M in investor restitution.
Police arrested the Massachusetts hedge fund manager last year. When pleading guilty to wire fraud, Murakami acknowledged that he diverted millions of dollars in investor monies to his own personal and business accounts, as well as used their funds to pay for a luxury sports car, make credit card payments, travel abroad, make purchases at expensive department stores, initiate investments on his own behalf, and issue Ponzi-like payments to investors.
Yasuna Murakami and Former Business Partner Were Working Together to Defraud Investors
Last year, the US Securities and Exchange Commission filed a civil case against Murakami. The regulator accused him of misappropriating over $8M of investor money to cover his personal expenses, as well as his business expenses. The SEC said that he issued about $1.3M in Ponzi like payments. Over 50 investors were purportedly bilked. Murakami’s ex-business partners Avia Chiat was charged with helping the former hedge fund manager raise investor funds and giving the latter made up account statements that exaggerated their returns.
The regulator accused the two men, MC2 Capital Management, and MC2 Canada Capital Management of violating sections of the Securities Act of 1933, the Securities Exchange Act of 1934, Rule 10b-5, the Investment Advisors Act, and Rule 206(4)-8. In January 2017, Massachusetts Secretary of the Commonwealth William Galvin also went after Murakami by filing a securities case and accusing him of running a Ponzi scam.
Our hedge fund fraud lawyers are here to help investors that have sustained significant losses in fighting to recoup their money, like those in the Yasuna Murakami case. Even if prosecutors and regulators have brought their own securities fraud cases against the firm or money manager that defrauded you, it is important that you have your own investor fraud attorney representing you and advocating on your behalf. Retaining the services of an experienced securities law firm only increases an investor’s chances of financial recovery. Contact Shepherd Smith Edwards and Kantas, LTD LLP today.
Massachusetts Hedge Fund Manager Gets Six years in Prison for Fraud, Reuters, May 3, 2018
Read the SEC Complaint (PDF)
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