Troy Rustill Stroud, Wire Fraud, California 2020

LOS ANGELES – In a brazen scheme to defraud lenders, a Gardena man was sentenced to 162 months in federal prison for running a multi-year scam that netted nearly $1 million in business loans. Troy Rustill Stroud, 54, used shell corporations, complete with fake corporate ‘officers,’ to deceive small business lenders into believing the companies were legitimate.

Stroud applied for business loans from at least 22 financial institutions, using the names of 14 companies, including Glorious Oak Company, Glossy Grape Investments Inc., and Polished Pine Group. He paid people to pose as officers of his corporations and used their names to apply online for business loans.

When Stroud received the loan proceeds, he used them to pay for his personal expenses and defaulted on the loans immediately or after a few payments. His scheme caused actual losses of $968,169, which he is required to pay in restitution.

Stroud pleaded guilty in August 2020 to one count of conspiracy to commit wire fraud and has been in federal custody since his arrest in May 2020. United States District Judge Stephen V. Wilson handed down the sentence, ordering Stroud to pay the restitution.

The FBI investigated this matter, and Assistant United States Attorney Andrew Brown of the Major Frauds Section prosecuted the case.

Stroud created sham corporations to obtain business loans from lenders, using fake corporate ‘officers’ to apply for the loans. He transferred funds between bank accounts to make it appear that the sham corporations were engaged in business.

His scheme was uncovered, and Stroud is now facing the consequences of his actions. The case serves as a reminder of the importance of due diligence when lending to businesses.

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