A Brazil man living in Naugatuck was sentenced to a year and a half in federal prison for reportedly stealing almost $600,000 from multiple individuals through an investment fraud scheme.
Rafael Muzzi, 28, was sentenced Thursday by U.S. District Judge Stefan R. Underhill in Bridgeport to 18 months in prison, according to the U.S. Attorney’s Office.
In 2017 and 2018, Muzzi reportedly used two entities he formed, Solace Investments LLC and Asseno LLC, to persuade investors to give him funds based on the belief that he would “use the funds for trading currencies in foreign exchange markets using a trading software program that he claimed he had developed,” federal officials said.
“Muzzi represented to victims that his software program had a feature that would cause trading to cease in the event of a certain loss in value, thus minimizing downside risk,” according to federal officials. “Muzzi failed to invest a substantial portion of invested funds as he represented, and instead diverted those funds for his own personal use, and to pay other individuals who had invested with him.”
Using this scheme, Muzzi reportedly stole a total of $579,925.28 from 21 investors, court records show.
“Muzzi sent victims fabricated monthly account statements that falsely overstated their return on investment and their account balances,” according to court records. “These misrepresentations induced some victim-investors to provide him with additional investment funds.”
The state of Connecticut’s Department of Banking launched an investigation into Muzzi conduct following victims’ complaints and found that Muzzi and Solace Investments had reportedly violated state securities laws. Muzzi and Solace Investments were ordered to make restitution to victims and Muzzi was fined $300,000, court records show.
According to officials, Muzzi traveled to Brazil on Sept. 6, 2020 and did not return.
A federal grand jury in New Haven returned an indictment on Aug. 23, 2022, charging Muzzi with fraud and money laundering offenses. Muzzi was arrested on April 1, 2023, in Panama, and waived his right to contest his extradition to the U.S. On July 30, 2024, he pleaded guilty to wire fraud.
Muzzi, who is released on a $150,000 bond, is required to report to prison on Feb. 11, 2026. He was also ordered to pay full restitution.
U.S. Attorney David X. Sullivan thanked Interpol and Panamanian authorities “for their assistance in apprehending this defendant, and the U.S. Department of Justice’s Office of International Affairs for coordinating the extradition proceedings in this matter.”
