A Naugatuck resident has been sentenced to 18 months in federal prison for operating an investment fraud scheme that defrauded 21 victims of nearly $580,000. U.S. District Judge Stefan R. Underhill handed down the sentence in Bridgeport to Rafael Muzzi, 28, a Brazilian citizen living in Connecticut.
According to court documents and statements made during the proceedings, Muzzi used two companies he formed—Solace Investments LLC and Asseno LLC—to persuade individuals to invest funds with him in 2017 and 2018. He claimed he would use the money for trading currencies on foreign exchange markets using a proprietary software program he said he developed. Muzzi assured investors that this software had safeguards to minimize losses by ceasing trading if values dropped below a certain threshold.
Instead of investing the money as promised, Muzzi diverted much of it for his personal use and paid other investors with new funds received, according to authorities. The total loss to investors was $579,925.28.
To further conceal the fraud, Muzzi sent fabricated monthly account statements to his victims that overstated their returns and account balances. These false reports led some investors to contribute additional funds.
The State of Connecticut’s Department of Banking investigated after receiving complaints from victims. The department determined that both Muzzi and Solace Investments violated state securities laws, ordered restitution for victims, and imposed a $300,000 fine on Muzzi.
Muzzi left for Brazil on September 6, 2020, without returning. On August 23, 2022, a federal grand jury indicted him on charges including fraud and money laundering. He was arrested in Panama on April 1, 2023; he waived his right to contest extradition back to the United States. On July 30, 2024, Muzzi pleaded guilty to wire fraud.
Judge Underhill ordered full restitution from Muzzi. He is currently released on a $150,000 bond and must report to prison on February 11.
The Federal Bureau of Investigation conducted the investigation with assistance from the Connecticut Department of Banking’s Securities Division.
U.S. Attorney David X. Sullivan expressed gratitude for international cooperation: “Interpol and Panamanian authorities assisted in apprehending this defendant,” Sullivan said. “The U.S. Department of Justice’s Office of International Affairs provided significant assistance in securing the arrest and extradition of the defendant from Panama.”
Assistant U.S. Attorneys Conor M. Reardon and Michael S. McGarry prosecuted the case.
