The man was Troy David Stratos. He was sentenced to 262 months in federal prison, and a court ordered him to pay Nicole Murphy $10,380,581 for losses excluding jewelry. The order establishes what he was required to pay—not how much Murphy has actually received.
How Troy Stratos swindled Nicole Murphy
According to the federal court’s restitution order, Stratos offered to manage Murphy’s divorce proceeds and real estate. He persuaded her to put assets into the Granite TN Revocable Trust, then told her the money had been invested overseas when it had not. The order says he used trust funds for expenses and other purposes.
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Stratos also persuaded Murphy to rent luxury vehicles to impress supposed buyers for her Granite Bay home. The court record says the buyers did not exist; Stratos used the vehicles and lived in the home for a time. The court’s restitution order describes these actions as part of the losses for which Murphy was owed restitution.
His conviction and prison sentence
The case involved two schemes. On May 19, 2015, a federal jury found Stratos guilty of six counts connected to a separate scheme involving purported pre-IPO Facebook shares. On August 31, 2016, he pleaded guilty to the remaining 14 counts, including counts arising from the scheme against Murphy. These dates and dispositions are recorded in a later court order. The order
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At a December 12, 2016 hearing, the court sentenced Stratos to 262 months in prison, the top of the 210-to-262-month guideline range stated in the order. The sentencing and restitution order
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Why early reports said $7 million
The $7 million figure came from reports about prosecutors’ allegations when the case was charged and during the 2015 trial. CBS Los Angeles reported the allegation on December 20, 2011; CBS Sacramento reported it during the trial in 2015. Those reports describe allegations at those stages, not the later restitution award. CBS Los Angeles, December 20, 2011; CBS Sacramento, 2015
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The later court order set Murphy’s non-jewelry restitution at $10,380,581. That is the amount ordered for those losses, not proof that she was repaid that sum. The order also set a payment schedule and called for further briefing about the jewelry. The cited order does not establish the eventual jewelry determination or how much restitution has since been collected. January 2017 restitution order
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