Brooklyn federal court delivered a stern justice today as Richard Dale Sterritt, Jr., alias ‘Richard Richman,’ was sentenced to 18 years in prison for orchestrating a multi-million-dollar scheme that defrauded investors out of $17 million. Sterritt’s crimes included conspiracy to commit securities fraud and wire fraud, along with multiple counts of securities fraud and money laundering.
United States District Judge Kiyo A. Matsumoto imposed the sentence for Sterritt’s role in duping investors in Zona Energy, a Texas-based oil and gas exploration company. He also manipulated stock in OrgHarvest, Inc., a publicly traded firm under his control. The scheme was a classic tale of deception: Sterritt raised $17 million, only to squander most of it on luxury items and personal expenses.
As part of the sentence, Sterritt must forfeit $17 million and pay $16.3 million in restitution. He pleaded guilty in November 2023, having already served five years for a similar fraud scheme. United States Attorney Joseph Nocella Jr. emphasized the commitment to protect investors from such white-collar criminals.
FBI Assistant Director Christopher G. Raia highlighted Sterritt’s relentless pursuit of personal gain, noting that today’s sentencing underscored the FBI’s dedication to investigating market manipulators. The Zona Energy scheme involved the use of sham entities and aliases to conceal control while misrepresenting the company’s business operations.
Additionally, Sterritt attempted to cover up his previous fraud by manipulating OrgHarvest Inc.’s stock prices through an undercover agent posing as a corrupt broker. This brazen attempt to inflate the value of ORGH shares was thwarted by the FBI’s diligent investigation.
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Key Facts
- State: New York
- Agency: DOJ USAO
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: Official Source ↗
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