Cambridge Hedge Fund Manager Sentenced for Investment Fraud Scheme


Investment Fraud Scheme

The owner of two Cambridge-based investment advisory firms receives sentence in connection with a scheme to defraud hedge fund investors. Yasuna J. Murakami, receives a six year prison sentence and three years of supervisory release for his role in an investment fraud scheme. The Court also orders Murakami to pay $10,520,634 in restitution and forfeit a luxury sports car that was purchased with proceeds of the fraud. In January 2018, Murakami pleads guilty to wire fraud.

Murakami is a managing member of MC2 Capital Management LLC and MC2 Canada Capital Management LLC – investment advisory firms. Within this corporate framework he  manages three hedge funds: the MC2 Capital Partners Fund, MC2 Capital Value Fund, and MC2 Capital Canadian Opportunities Fund.

Ponzi Scheme Disguised as a Hedge Fund

Between 2011 and 2016, Murakami fraudulently diverts millions of dollars of investor funds to business and personal accounts in his control. He uses the money to pay for lavish personal expenses such as international travel, an exotic sports car, and payments to personal credit cards and luxury boutique stores. Murakami uses new investor contributions to make Ponzi scheme-like payments to earlier investors who make redemption requests. Murakami also places investments in his own name.

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