BROOKLYN, NY – Richard Dale Sterritt, Jr., a repeat offender known to his marks as “Richard Richman,” is headed back to prison for 18 years. The serial fraudster was sentenced today in federal court after being convicted of conspiracy to commit securities fraud and wire fraud, multiple counts of securities fraud, and conspiracy to commit money laundering. The scheme, spanning years, saw Sterritt swindle investors out of approximately $17 million, lining his own pockets while leaving a trail of ruined finances in his wake.
According to court documents, Sterritt targeted investors in Zona Energy, a Texas-based oil and gas exploration company, and manipulated the stock of OrgHarvest, Inc., a publicly traded company he secretly controlled. The Department of Justice (DOJ) revealed that Sterritt and his cohorts – James Christopher Pittman, Mark Ross, and Robert Magness – fabricated details about Zona Energy’s operations and financial health to lure in investors. They raised roughly $17 million, then allegedly diverted over $10 million to fund a lavish lifestyle including luxury goods, expensive vehicles, and indulgent travel. This wasn’t Sterritt’s first rodeo; he previously served five years in federal prison for a remarkably similar fraud scheme.
“For years, Richard Sterritt preyed on unsuspecting investors and betrayed their trust by spending their money on expensive cars, luxury goods, and high-end travel,” thundered United States Attorney Joseph Nocella, Jr., in a press statement. “Today’s sentence punishes Sterritt for his crimes and protects the public from this serial fraudster. My Office is committed to protecting the investing public and the integrity of the markets from white-collar criminals like the defendant.” Judge Kiyo A. Matsumoto didn’t just hand down the prison sentence; she also ordered Sterritt to forfeit approximately $17 million in fraudulently obtained gains and pay approximately $16.3 million in restitution to the victims.
The Zona Energy con involved a network of shell companies and “nominees” designed to hide Sterritt’s control. He even adopted the alias “Richard Richman” to conceal his criminal past from potential investors. Meanwhile, to cover his tracks and further enrich himself, Sterritt, alongside Ross and Magness, attempted to artificially inflate the stock price of OrgHarvest, Inc. (ticker: ORGH). The scheme involved a disturbing collaboration with an undercover FBI agent posing as a corrupt stockbroker, who was tasked with executing matched trades to create the illusion of market demand. Sterritt held the majority of ORGH shares through a web of trusts linked to his associates and family.
Christopher G. Raia, Assistant Director in Charge of the FBI’s New York Field Office, emphasized the brazen nature of Sterritt’s actions. “Despite his prior conviction for a similar conspiracy, Richard Sterritt once again facilitated the theft of more than $17 million from trusted investors and shareholders through misrepresentations while separately attempting to manipulate the stock of another company,” Raia stated. “Sterritt’s multiple attempts to defraud investors reflects his relentless pursuit to use others’ money to fund his personal lifestyle and businesses. May today’s sentencing emphasize the FBI’s continued commitment to investigate any individual who manipulates our economic market to line their own pockets.”
The investigation, which led to Sterritt’s guilty plea in November 2023, also received crucial assistance from the U.S. Securities and Exchange Commission (SEC) and Financial Industry Regulatory Authority (FINRA). The message from federal authorities is clear: repeat offenders like Richard Sterritt will be pursued relentlessly, and the financial well-being of honest investors will be fiercely protected. This case serves as a stark reminder of the pervasive threat posed by white-collar criminals and the importance of vigilant oversight in the financial markets.
Related Federal Cases
- Oil Swindle: Harley Gets 12 Years, Appeal Fails · Delaware
- Tennessee Man Roman Gets 71 Months for $1.9M Ponzi Scheme · Kansas
- Michigan Man Gets 18 Months for Copper Heist · Arkansas
- Serial Fraudster Richard Sterritt Sentenced to 18 Years for $17M Swindle · Texas
- PPE Order Lies Land CEO, Consultant in Court · Texas
Key Facts
- State: New York
- Agency: DOJ USAO
- Category: White Collar Crime
- Source: Official Source ↗
🔒 Get the grimiest stories delivered weekly. Subscribe free →
Browse More
MORE FEDERAL CRIME NEWS
White Collar CrimeWhite Collar CrimeWhite Collar CrimeWhite Collar Crime