Cambridge Man Accused Of Running Multi-Million Dollar Ponzi-Like Scheme

BOSTON, MA – The owner of two Cambridge-based investment advisory firms is accused by federal officials of running a five-year Ponzi-like scheme in which he allegedly defrauded investors of millions of dollars which he used to fund his lavish lifestyle.

Yasuna J.Murakami, 44, of Cambridge ,was arrested in Vermont as he crossed back into the United States from Canada on Saturday. Murakiami is scheduled to appear in U.S. District Court on Wednesday facing a charge of wire fraud.

Murakami could not be reached for comment because there was no phone number or email address available for him.

Investigators allege that Murakami was a managing member of MC2 Capital Management LLC and MC2 Canada Capital Management LLC – investment advisory firms through which Murakami established and managed three hedge funds: the MC2 Capital Partners Fund, MC2 Capital Value Fund, and MC2 Capital Canadian Opportunities Fund.

It is alleged that between 2011 and 2016, Murakami fraudulently diverted millions of dollars of investor funds to business and personal accounts he controlled. He allegedly used the money to pay for lavish personal expenses such as a luxury sports car, international travel, and payments to personal credit cards and high-end department stores.

According to court documents, Murakami used new investor contributions to make payments to earlier investors, who had made redemption requests, and to place investments in his own name.

As part of the fraud, it is also alleged that Murakami withheld material information regarding the management of the MC2 Canadian Opportunities Fund and provided investors with falsified account statements and tax documentation in an effort to lull them into believing their investments were safe.

In a parallel action, the Securities and Exchange Commission (SEC) announced securities fraud charges against Murakami and his hedge fund advisory firms. The SEC also filed charges against Murakami’s former business partner, Avi Chiat, in connection with the scheme. In January, the Massachusetts Securities Division filed civil fraud charges against Murakami for the same conduct.