A U.S. Navy veteran has been handed a two-year prison sentence for orchestrating a fraudulent investment scheme that defrauded fellow veterans and active-duty sailors of approximately $300,000.
Robert L. Murray, a retired chief petty officer, misappropriated the funds for personal indulgences, including gambling excursions to casinos in Cleveland and other locations. Additionally, he suffered significant losses during the 2021 GameStop "meme stock" frenzy.
As reported by American Military News, U.S. District Judge Manish Shah in Chicago mandated that Murray commence his sentence immediately and ordered him to pay $112,000 in restitution. The 45-year-old veteran is also embroiled in a lawsuit initiated by the U.S. Securities and Exchange Commission (SEC) in 2022, which has been temporarily suspended pending the resolution of the criminal proceedings. Court documents reveal that Murray resided in North Canton and Chicago during the fraudulent activities before relocating to Alaska.
Federal prosecutors, alongside SEC attorneys, have accused Murray of betraying the trust he cultivated with fellow service members. He established an investment fund, targeting investors through Navy-specific groups on social media platforms such as Facebook and Discord. Through his LLC, Deep Dive Strategies, Murray amassed $342,000 from 40 investors across the nation, including some stationed overseas. Prosecutors assert that Murray swiftly diverted these funds for personal use rather than legitimate investments, culminating in substantial losses during the GameStop stock surge. Within a mere six months, the entirety of the investors' money was squandered.
Murray's military service concluded in 2018, following deployments to Iraq and Afghanistan, where he provided medical care to wounded soldiers and sustained at least one traumatic brain injury. Defense attorney Holly Blaine highlighted in court filings that Murray was subsequently diagnosed with post-traumatic stress disorder and other mental health issues, resulting in a 100 percent disability rating.
"It is also abundantly clear from his arrest record that the brain injuries and mental health conditions he experiences contributed to not only this conviction but his prior arrests and convictions as well," Blaine noted.
The case underscores the importance of safeguarding the financial interests of veterans and active-duty personnel, who may be particularly vulnerable to fraudulent schemes. It also raises questions about the support systems in place for veterans grappling with mental health challenges and the potential impact on their post-service lives.
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