Atlanta CEO Sentenced to Prison for Securities Fraud

Richard J. Randolph, III, the former CEO of Randolph Acquisitions, Inc., has been sentenced to prison for committing securities fraud while at the helm of the Atlanta-based company.

According to Acting U.S. Attorney Kurt R. Erskine, Randolph used his position to defraud investors out of millions of dollars. The charges against Randolph include securities fraud, which he committed between 2017 and 2018.

During this time, Randolph sold over $1 million in Randolph Acquisition stock to various investors. He also falsified financial statements and provided false information to investors, including valuing properties at inflated prices and misrepresenting the company’s assets.

One of the most egregious examples of Randolph’s deceit was the valuation of a property at $10.5 million, when in reality it was purchased for $1.1 million with a $1.1 million mortgage loan secured by the property. He also claimed that Gallagher Management Group owned two buildings valued at $10 million combined, when in fact, neither Gallagher Management Group nor Randolph ever owned these properties.

Randolph’s scheme eventually unraveled under the scrutiny of law enforcement professionals, who uncovered the extent of his deceit. He was eventually sentenced to prison for his crimes.

The case against Randolph serves as a reminder that corporate executives have a responsibility to protect investors’ money, not take advantage of their position to defraud them.

Defendant: Richard J. Randolph, III

Criminal Charges: Securities Fraud

City and State: Atlanta, Georgia

Exact Date: Not specified in the source

Sentence: Prison time

Dollar Amounts: Over $1 million

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