The law offices of Gana Weinstein LLP are investigating reports by multiple securities regulatory agencies that Yasuna Murakami (Murakami), Avi Chiat (Chiat) and the companies and hedge funds that the two managed defrauded over 50 investors by raising $15 million and then misappropriating funds in Ponzi like fashion.
According to the SEC, From 2007 to 2016, Murakami and Chiat defrauded more than 50 investors in three hedge funds run through their investment advisory businesses, MC2 Capital Management, LLC and MC2 Canada Capital Management, LLC. The three hedge funds are the MC2 Capital Partners, LLC (Partners Fund), MC2 Capital Value Partners, LLC (Value Fund), and the MC2 Capital Canadian Opportunities Fund, LLC (Canadian Fund).
The SEC alleged that the firms and their principals violated their fiduciary duties as advisers to the funds by lying to investors about the funds’ performance, falsifying account statements, falsifying tax documents, falsifying performance letters, and providing other misleading communications to investors. According to the SEC, Murakami and Chiat continually misled investors into believing they had invested in profitable ventures when in reality Murakami and Chiat engaged in unprofitable trading that lost more than 70% of the money raised for their first hedge fund in less than two years.
Further, the SEC found that over nearly a decade Murakami stole more than $8 million of investor funds and spent those funds on personal and business expenses. The SEC also alleged that Murakami used $1.3 million of investor funds to make Ponzi-like payments to earlier investors while telling those investors that the proceeds were from investment gains.
According to news reports, Murakami was arrested and accused of misappropriating millions of dollars from investors and engaging in a Ponzi-like scheme by the Department of Justice. Murakami was arrested in Vermont and charged in a criminal complaint with wire fraud in federal court in Boston. In addition, Massachusetts Secretary of the Commonwealth William Galvin brought an administrative action in January against Murakami similarly alleging that he engaged in a Ponzi scheme.
Investors who have suffered losses may be able recover their losses. The attorneys at Gana Weinstein LLP are experienced in representing investors in cases of Ponzi schemes against firms that fail to supervise the activity or knowingly aid fraudulent conduct. Our consultations are free of charge and the firm is only compensated if you recover.