Massachusetts securities regulators allege that three hedge funds in Cambridge
are operating a Ponzi scheme that has cost investors more than $15 million
Ponzi Scheme Fraud
A recent Massachusetts
hedge fund Ponzi scheme has collected approximately $15.3 million from at least 47 investors.
Three Cambridge-based hedge funds and their manager, Yasuna Murakami,
have been barred by regulators from doing further securities business
in Massachusetts. A Boston federal court has sentenced Murakami to six
years in prison and ordered him to pay $10,520,634 in restitution for
defrauding hedge fund investors.
Yasuna Murakami has a 10-year history of hedge fund fraud dating back to
2007 when he established MC2 Capital Partners Fund. The fund was sold
to friends and family members who invested over $3.5 million and lost
most of their investments. In 2008, Murakami started a second hedge fund,
MC2 Capital Value Partners Fund, which showed net losses for the first
three years. In 2009, Murakami launched the MC2 Capital Canadian Opportunities
Fund in Toronto with a well-known partner, Donville Kent Asset Management.
Securities regulators say the association with Donville Kent encouraged
many investors to invest in the fund, including a Boston institutional
investor who invested $2 million. According to the report, Murakami used
funds collected from investors through the Canadian Fund to pay Value
Fund and Partners Fund investors their promised returns.
In 2017, Murakami was arrested and charged with investment fraud. He admitted
to spending millions of dollars of investor funds on things that promoted
his personal lavish lifestyle. He purchased a luxury sports car, designer
clothing and expensive jewelry, air travel to international destinations,
expensive hotel rooms at five-star hotels, and luxurious accommodations
for his home. He took money from investors and placed investments in his
own name, then made
Ponzi scheme payments to investors. In court, Murakami admitted to withholding important
hedge fund information and providing false information to investors, so
they would think their investments were safe.
In the 2017 arrest, the SEC alleged that Murakami cost investors more than
$8 million in losses by spending funds on his personal expenses. They
also alleged that over $1.3 was spent in Ponzi scheme payments. Avi Chiat,
Murakami's former business partner, was also charged for allegedly
raising money from investors by providing them with falsified account
statements that showed inflated investment performance.
If you were the victim of investment fraud, our attorneys at Meyer Wilson
may be able to help. Call us at (888) 390-6491 to discuss your situation
with a member of our firm today, or
fill out our online form to set up a free case consultation. Our firm has secured more than $350
million in verdicts and settlements for our clients over the years, and
we know what it takes to fight for and secure the maximum compensation
possible. Don’t wait to get the legal help you need.