SACRAMENTO, Calif. — Troy David Stratos, 50, formerly of Los Angeles, is going to federal prison for 21 years and 10 months after being convicted of orchestrating a sprawling, years-long fraud scheme that bilked millions from victims while living a life of luxury. U.S. District Judge Troy L. Nunley handed down the sentence today, marking the end of a criminal saga that spanned over half a decade and left devastation in its wake.
Stratos was found guilty of multiple counts of mail fraud, wire fraud, money laundering, and obstruction of justice. According to U.S. Attorney Phillip A. Talbert, the crimes were not just financially ruinous—they were emotionally devastating. ‘The fraudulent schemes devised and orchestrated by Stratos were staggering in their scope and audacity,’ Talbert said. ‘He preyed upon his victims to satisfy his own voracious greed and desire for a lavish lifestyle.’
Between August 2005 and September 2007, Stratos targeted a woman who had recently divorced, convincing her he was a wealthy investor with major oil holdings. He persuaded her to create a trust, which he then controlled, promising to manage her assets and invest her divorce proceeds overseas—particularly in Dubai and the United Arab Emirates—for massive returns. In reality, he funneled her money into his own pockets, using it for personal expenses while lying that he was covering her costs with his own funds.
When federal investigators began closing in, Stratos didn’t back down—he doubled down. In early 2007, after learning his bookkeeper had received a grand jury subpoena for financial records tied to his casino spending in Las Vegas, Stratos ordered the records withheld. The FBI later recovered those documents in April 2010 during a search of a storage locker he maintained—records he had deliberately concealed to obstruct justice.
By December 2010, Stratos had already launched a new scam, this time targeting Tim Burns, a financial manager in Pennsylvania. Posing as ‘Ken Dennis’—an alias adopted due to the negative online reputation of his real name—Stratos falsely claimed to represent billionaire Carlos Slim. He convinced Burns he could secure pre-IPO Facebook shares at a discount, swindling approximately $11,250,000 from investors. The shares never existed. The money vanished into Stratos’ fraudulent web.
‘Despite the complexity of his lies to conceal his schemes, Troy Stratos is, quite simply, a common con artist,’ said FBI Sacramento Special Agent in Charge Monica M. Miller. ‘He exploited a life-long friendship to live luxuriously while draining the friend’s financial accounts.’ The FBI vows to continue pursuing those who weaponize deception on such a scale. Today’s sentence sends a clear message: no matter how intricate the lies, justice will track you down.
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Key Facts
- State: California
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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