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A CPA based in Lebanon, Mo., has been convicted of fraud that included using  $72,704 in client funds to pay off his Chevrolet Corvette. Douglas A. Richardson, 46, transferring $4.4 million from a former employer while stealing from clients—taking $7 million from both.

A federal jury found Richardson guilty of six counts of wire fraud and four counts of money laundering between February 2014 to October 2016. He faces up to 20 years in federal prison without parole for each of the six wire fraud convictions and up to 10 years in prison without parole for each money laundering count.

Since February 2009, Richardson had owned Douglas A. Richardson, CPA, LLC. He was also former CFO, treasurer, and CPA of Smart Prong Technologies, a Tulsa, Okla.-based business, from Dec. 2013, to June 2016. Smart Prong developed technology, and manufactured devices for charging cell phones.

Richardson transferred at least $4.4 million from Smart Prong’s bank accounts into his personal and business accounts. He tricked clients into loaning him money for investments, planning all along to take the funds for personal use and paid off other individuals, including prior investors and other creditors.

One client was encouraged to participate in a promissory note program. Richardson claimed the client could earn money from interest on loans for funding a real estate deal and an automobile dealership. After the client loaned Richardson $365,000 from his business, the CPA used $230,000 to repay another individual and $72,704 for paying off the Corvette, while issuing himself a $7,500 check.

Bob Scott
Bob Scott has provided information to the tax and accounting community since 1991, first as technology editor of Accounting Today, and from 1997 through 2009 as editor of its sister publication, Accounting Technology. He is known throughout the industry for his depth of knowledge and for his high journalistic standards.  Scott has made frequent appearances as a speaker, moderator and panelist and events serving tax and accounting professionals. He  has a strong background in computer journalism as an editor with two former trade publications, Computer+Software News and MIS Week and spent several years with weekly and daily newspapers in Morris County New Jersey prior to that.  A graduate of Indiana University with a degree in journalism, Bob is a native of Madison, Ind
Last modified on Tuesday, 19 November 2019
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