Kristian Murphy Fuse or “Murda Murphy” Escapes Prison By Turning States Evidence.

Two Former Hedge Fund Managers Get 3 Years for Fraud.

Kristian Murphy “The Rat”, Teshiki 69 “Another Rat” Turn States Evidence to save their asses.


Two former hedge fund managers, who padded their resumes and doctored their company’s marketing material to defraud investors out of more than $1 million, were each sentenced to three years in prison Wednesday.

Michael Katz and Christopher Fardella of KMFG International, LLC both pleaded guilty in October 2011 to one count of securities fraud, mail fraud and conspiracy before U.S. District Judge Laura Swain in Manhattan.

The men, along with two other co-defendants, were partners at the Florida hedge fund. From April 2005 through November 2006, they made “cold calls” that netted $1.03 million from investors across the country. During these calls, investors were lied to about the firm’s financial performance and sent materials that claimed the hedge fund was operated by a team of successful traders, hedge fund managers and executives from oil and gas companies with a track record of producing profits.

Instead, what investors got was a group of people who had no experience running a hedge fund and who were never top-level executives in the oil or gas industry.

KMFG’s misleading marketing materials described its trading strategy as focused on “stocks that are overbought or oversold” and said its strategy made the company “relatively insensitive to world events and overall market events.” They claimed their winning strategy had been developed by a current “managing member of KMFG International on a separate equities fund” which had generated “cumulative returns for 30 months of over 165%.” According to prosecutors, the company never made a profit for any of its investors.

Instead, Katz, 33, and Fardella, 34, used the money they bilked to treat themselves to expensive meals and trips to Las Vegas. According to court documents, the men and their co-conspirators either lost or spent $981,000 out of the $1.03 million they collected from investors.

“Their sentences demonstrate to those who may consider similar schemes that smoke and mirrors will not fool law enforcement, and you will be held accountable for such fraudulent activity,” said U.S. Attorney Preet Bharara.

In addition to their prison sentences, the men were also ordered to pay $981,000.

A third KMFG employee, Kristian Murphy-Fuhse, has been charged for his role in the fraud. He pleaded guilty in January and is awaiting sentencing.

Calls to Katz and Fardella’s attorneys were not immediately returned.

Sponsored Stories You May Like

$11/Mo Gets Seniors Under 75 of Age $100k Life Ins

American Life Insurance Today

New Program May Pay Off Your Home If You Live In New Jersey

Enhanced Refi Now

Nobody Makes It Past Slide 12- Use Discretion


Ads by Verizon Media

Sponsored Stories

More from Fox Business

7 Income Strategies for Retirees Who Saved $500k+

Sponsored | Fisher Investments

Biden’s White House in a ‘real crisis’: Stephen Moore

Fox Business

New Program May Pay Off Your Home If You Live In New Jersey

Sponsored | Enhanced Refi Now

NYC’s White population surges as Black residents exit

Fox Business

Here’s Why First-Time Managers Fail At High Rates

Sponsored | Skillsoft

Biden admin appeals federal court decision to block oil, gas leasing pause

Fox Business

$11/Mo Gets Seniors Under 75 of Age $100k Life Ins

Sponsored | American Life Insurance Today

California man loses half his savings to scammer claiming to be Bank of America employee

Fox Business

New “Hybrid Driver” Splits the Fairway Every Time

Sponsored | Power Clinic Golf

Kim Jong Un’s sister threatens to bolster military after being ignored by US

Fox Business

Matt Lauer is ‘Not Doing Well,’ and We Know Why

Sponsored | Fresh Edit

Kroger responds to ‘senseless’ killing at Memphis fuel center

Fox Business

Ads by Verizon Media


Quotes displayed in real-time

Market Update sponsored by


Latest on Fox Business

just in

MGM Resorts requiring COVID-19 vaccines for salaried employees, new hires

17 mins ago

Looking to pay down high-interest debt? Here’s 3 expert-approved methods


Iraq veteran on Taliban Afghan takeover: US will struggle getting every American out ‘safely’

36 mins ago

California drought takes toll on world’s top almond producer

1 hour ago

Dog food recalled due to elevated levels of vitamin D

Your Money

17 mins ago

Looking to pay down high-interest debt? Here’s 3 expert-approved methods

1 hour ago

Can my lender report my mortgage payments as late when I’m in forbearance?

2 hours ago

Looking to refinance? Check out the latest drop in 20-year mortgage refinance rates | August 17, 2021

3 hours ago

Today’s mortgage rates hold steady at bargain lows | August 17, 2021

4 hours ago

2020 Census data confirms national housing shortage, but a few regions may offer more for buyers

Wall Street Journal,, FOX News, CNN, MSNBC, Kris Murphy, Eminem, Jennifer Lopez, Instagram, Snap Chat, Facebook, Twitter, LinkedIn, Bing, Duck Duck Go, Google, Amazon, Amazon Prime, Jeff Bezos, NY Times, Joe Biden, China, Covid 19, Goldman Sachs, Andrew Cuomo, Rudy Giuliani, China, Afghanistan, Chicago Murders.




Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
robert massimi

robert massimi


Drama critic for Nimbus Magazine, Metropolitan Magazine and New York Lifestyles Magazine. Producer, editor and writer.