As part of the fraud, Murakami withholds material information regarding the management of the MC2 Canadian Opportunities Fund. Additionally, he provides investors with false account statements and tax documentation. In doing so, he lulls the investors into believing their investments are safe.
“He went to great lengths to con new and existing investors out of their retirement savings, out of their 401(K)s and IRAs, knowing full well he was never going to be able to pay that money back,” Assistant U.S. Attorney Jordi de Llano said in court.
In a parallel action, the Securities and Exchange Commission (SEC) announces securities fraud charges against Murakami and his hedge fund advisory firms. The SEC also files charges against Murakami’s former business partner, Avi Chiat, in connection with the fraud scheme. Finally, the Massachusetts Securities Division files civil fraud charges against Murakami for the same conduct.
