Richard Harold Stone, Operating an Illegal Money Transmitting Business, Arkansas 2023

FAYETTEVILLE – In a shocking case of financial exploitation, Richard Harold Stone, a 77-year-old man from Northwest Arkansas, was sentenced to 51 months in federal prison for operating an illegal money transmitting business using pandemic funds.

On February 20, U.S. District Judge Timothy L. Brooks presided over the sentencing hearing, which took place in the United States District Court in Fayetteville. Stone was ordered to pay restitution of $725,558.00.

According to court documents, Stone was the President or Chief Officer of numerous businesses registered with the Arkansas Secretary of State, including Partex Oman Corp., Renewable Energy Campus Arkansas, Inc., Stonetek Global Corp., and Tires 2 Energy, LLC. Stone also was associated with Environmental Energy & Finance Corp., a Delaware corporation.

The advertised purpose of these businesses was developing technology and facilities to repurpose waste materials, such as tires, into useable fuel sources. None of these businesses were registered with the State of Arkansas as a money transmitting business, as required by Arkansas law (Arkansas Code, Section 23-55-806(b)&(c)).

Between November 2020 and March 2021, Stone received through various bank accounts associated with the above entities and other accounts under his control, deposits of funds from applications made on behalf of unwitting victims for Paycheck Protection Program (PPP) loans, Economic Impact Disaster Loans (EIDL), and Pandemic Unemployment Assistance (PUA), totaling more than $600,000.

After receiving these funds, Stone immediately transferred most of the funds by wire transfer to parties in locations including Berne, Switzerland; London, England; New York, NY; Chennai, India; and Mumbai, India.

At the conclusion of Thursday’s sentencing hearing, Stone was immediately remanded to the custody of the U.S. Marshals Service.

The case was investigated by the Internal Revenue Service-Criminal Investigation, Federal Bureau of Investigation, and Department of Labor Office of the Inspector General. Assistant U.S. Attorney Hunter Bridges is prosecuting the case.

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