The owner of two Massachusetts-based investment advisory firms has pleaded guilty to defrauding his investors of millions of dollars to fund his own lavish lifestyle.

Federal prosecutors say 44-year-old Yasuna Murakami, of Cambridge, pleaded guilty Tuesday to wire fraud. He faces up to 20 years in prison at sentencing on April 8.

Murakami was a managing member of MC2 Capital Management LLC and MC2 Canada Capital Management LLC, investment advisory firms through which he established and managed three hedge funds.

Authorities say he diverted client money for personal use, including for a luxury sports car and international travel.

Murakami also used new investor contributions to make Ponzi-like payments to earlier investors, and falsified account statements and tax documentation in an effort to lull clients into believing their investments were safe.

Also read:

Former equity firm partner billed clients for vacations, clothing: SEC

OSC lays charges for fraudulent sale of securities

Originally published on Advisor.ca
Add a comment

Have your say on this topic! Comments are moderated and may be edited or removed by
site admin as per our Comment Policy. Thanks!