Former Navy officer sentenced to prison for defrauding fellow veterans and sailors

A former resident of North Canton has been handed a two-year prison sentence for defrauding 40 investors of $340,000. Robert L. Murray, a retired chief petty officer in the U.S. Navy, engaged in an investment fund scam that targeted fellow veterans and active-duty sailors, leading to significant financial losses for those involved. The scheme orchestrated by Murray involved using investors’ funds on personal expenses, including gambling trips to casinos in Cleveland and other locations. Additionally, he suffered substantial financial losses during the GameStop “meme stock” craze of 2021, further exacerbating the situation for his victims.

The sentencing, issued by U.S. District Judge Manish Shah in Chicago, not only included a two-year prison term but also mandated that Murray pay $112,000 in restitution. In addition to the criminal case, Murray is facing a lawsuit filed by the U.S. Securities and Exchange Commission for his fraudulent activities. Although Murray resided in North Canton and Chicago during his illicit activities, he later relocated to Alaska, as documented in court records.

Federal prosecutors and SEC attorneys accused Murray of breaching the trust he cultivated among his fellow service members. Under the guise of establishing an investment fund, Murray formed an LLC named Deep Dive Strategies to attract investors from Navy-centric groups on social media platforms like Facebook and Discord. Despite accumulating a substantial sum of $342,000 from 40 individuals nationwide, including some stationed overseas, Murray diverted these funds towards personal expenditures instead of making legitimate investments as promised.

Moreover, Murray’s investment decisions, including significant losses incurred during the GameStop stock market turmoil, ultimately resulted in the entire sum of investors’ money being depleted within six months. During his sentencing, details emerged about Murray’s military background, including his service in Iraq and Afghanistan, where he provided medical care to injured soldiers. His tenure in the military was cut short in 2018 due to retirement following multiple traumatic events, resulting in post-traumatic stress disorder and other mental health conditions.

Legal defense presented on Murray’s behalf cited his combat-related injuries, including traumatic brain injury, as contributing factors to his actions. The defense attorney, Holly Blaine, emphasized how these injuries, combined with mental health issues, had a significant impact on Murray’s decisions and prior encounters with the law. Blaine highlighted how Murray’s criminal behavior and subsequent convictions were influenced by his physical and mental health challenges.