Wednesday, December 21, 2011
Nicole Murphy is out $7 million from her divorce settlement after an investor she trusted conned her. Troy David Stratos, 45, was arrested yesterday and charged with 14 charges of fraud, money laundering and obstructing justice.
The SF Gate is reporting that Stratos convinced Murphy to invest her divorce proceeds overseas, where she’d earn a high rate of return, but he instead spent the money on himself. He also opened a bank account in Florida and used Nicole’s money to pay for her own expenses. Stratos told Nicole he could sell a home that she previously owned, but that she should lease luxury cars to make the property more attractive. Instead, he lived in the house, used the vehicles himself and never arranged for them to be sold.
The wire and mail fraud charges carry a maximum penalty of 20 years in prison, while the money laundering and obstruction charges carry 10-year maximum sentences.