Claimed real estate investor, Richard J. Randolph charged with securities fraud
ATLANTA (STL.News) Richard J. Randolph, III, has been arraigned on federal charges of securities fraud. Randolph was charged in an information filed on April 1, 2021.
“Investors expect the companies that they invest in will operate with integrity,” said Acting U.S. Attorney Kurt R. Erskine. “The defendant allegedly went to great lengths to mislead potential clients, convincing some to invest over $1.5 million in the alleged scheme.”
“Creative fraud is still fraud,” said Special Agent in Charge Steve Baisel, U.S. Secret Service Atlanta Field Office. “Fortunately, the combined efforts of law enforcement partners are an effective way to stop bad actors.”
According to Acting U.S. Attorney Erskine, the charges, and other information presented in court: Richard Randolph was the CEO, Chairman of the Board of Directors, and majority shareholder of Randolph Acquisitions, Inc., a company headquartered in Atlanta that publicly filed its financials with the Securities and Exchange Commission. He also controlled Gallagher Management Group and other related entities. In 2017 and 2018, Randolph sold over $1 million in Randolph Acquisition stock to various investors.
In 2017, Randolph began preparing to merge Gallagher Management Group into Randolph Acquisitions and sold Randolph Acquisitions shares to multiple investors.