Richard J. Randolph III, Securities Fraud, Georgia 2023

Atlanta CEO Sentenced for Securities Fraud

ATLANTA – Richard J. Randolph, III has been sentenced to prison for his role in a major securities fraud scheme that deceived investors out of millions of dollars while he was the CEO of Randolph Acquisitions, Inc.

According to court documents, Randolph, 54, sold over $1 million in Randolph Acquisitions stock to various investors in 2017 and 2018, while hiding the company’s true financial situation from them. He also controlled Gallagher Management Group and other related entities, which he used to further his scheme.

“Corporate executives, like Randolph, are expected to defend investors’ money, not take advantage of their position in a company to defraud them,” said Acting U.S. Attorney Kurt R. Erskine. “Instead, this defendant let his greed get the better of him and now he faces significant federal prison time.”

Special Agent in Charge Steven R. Baisel, U.S. Secret Service – Atlanta Field Office, added, “Fraud is fraud, no matter how complicated. The defendant in this case employed multiple machinations in an effort to hide his criminal acts. Ultimately, his efforts failed under the scrutiny of the law enforcement professionals tasked with unraveling his schemes.”

Randolph’s scheme involved falsifying financial statements and property valuations to make it appear as though Gallagher Management Group was a successful and profitable company. He provided false bank statements, property valuations, and other information to investors, which he used to sell them shares in Randolph Acquisitions.

The audited financials included other misrepresentations, including false statements about Gallagher Management Group’s assets, investment banking services, and investment management services. The company engaged a consultant to prepare a business valuation for the merger, which relied on Randolph’s false information and projections.

Randolph was sentenced to 30 months in federal prison for his role in the securities fraud scheme. The court also ordered him to pay restitution to the victims of his scheme.

“This case serves as a reminder that corporate executives will be held accountable for their actions, and that law enforcement will continue to work tirelessly to protect investors and bring those who commit securities fraud to justice,” said Acting U.S. Attorney Erskine.

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