Arkansas Man Sentenced to 51 Months for Funneling COVID Relief Funds Overseas

The U.S. Department of Justice building in Washington, D.C. (Shutterstock)

Richard Harold Stone, 77, of Bentonville, was sentenced to 51 months in federal prison for operating an illegal money transmitting business, the U.S. Attorney’s Office for the Western District of Arkansas announced Monday.

U.S. District Judge Timothy L. Brooks also ordered Stone to pay $725,558 in restitution and serve three years of supervised release following his prison term.

According to court documents, Stone waived indictment by a grand jury and pleaded guilty to a charge of conducting an unlicensed money transmitting business in Arkansas.

Stone was the president or chief officer of numerous businesses registered with the Arkansas Secretary of State, including: Partex Oman Corp.; Renewable Energy Campus Arkansas Inc.; Stonetek Global Corp.; and Tires 2 Energy LLC.

Between November 2020 and March 2021, Stone fraudulently obtained more than $600,000 in Paycheck Protection Program loans, Economic Impact Disaster Loans and Pandemic Unemployment Assistance applications filed on behalf of unknowing victims, the U.S. Attorney’s Office said in a news release. After receiving these funds, Stone immediately transferred most of the money by wire to parties in locations including Berne, Switzerland; London, England; New York City; and Chennai and Mumbai, India.

Stone also was associated with Environmental Energy & Finance Corp., a Delaware corporation. The advertised purpose of these businesses was developing technology and facilities to repurpose waste materials, such as tires, into useable fuel sources.

Authorities said none of these businesses were registered with Arkansas as a money transmitting business, as required by state law.