Original subtitles

In this episode of American Greed, Troy Stratos goes through life asking, why

work for money when it's so easy to steal?

And all he makes off with more than $40 million from people who call him a

friend, like Nicole Murphy, Eddie Murphy's ex -wife, worth millions.

Troy and I had such a great relationship.

We were like the best of friends.

But Stratos is more often described as a predator than a friend.

He dazzles his victims with charm and promises.

He was willing to sign an $11 million, 11 movie contract with me to keep the

exclusive to him.

Then he destroys them.

He yelled at me for a half an hour, called me stupid, incompetent, lazy,

idiotic. But his is a con that pays off big.

He was spending, on average, $1 million a month.

He's the greatest con man, in my opinion, that ever lived.

In early 2007, Troy Stratos is living in a 12 ,000 -square -foot mansion outside

of Sacramento, California.

He is taking care of the house because the owner, his good friend Nicole

actor Eddie Murphy's ex -wife, has moved to Los Angeles.

He gets a call. It's Nicole.

She has entrusted Stratos with her money, and now she is being hounded by

creditors.

Stratus reassures her that everything is fine.

But he is lying.

At this point, he has already taken at least $13 million from trusting victims

like Nicole Murphy.

And the question is, what is the secret to this con artist's stunning success?

The answer begins in Maui in 1994.

Stratos is 28, an aspiring film director.

He comes to the island to work on a film script with the man who will become one

of his best friends in life, Richard Hack.

He was extremely articulate and charming, and I thought that I was

this substantial talent.

Hack is a journalist.

a best -selling author of more than a dozen books.

He is a favorite guest for television interviews.

Richard Hack uncovers America's first billionaire in his new book, simply

Hughes.

In Maui, as Stratus and Hack become friends, Stratus describes the sad

of his childhood, a story he tells many victims.

He is an unwanted baby.

His father, who he does not know growing up, is black. His mother is a white

teenager. He is raised by his grandparents.

Every time someone would come over to the house, Troy was removed and put in

outbuilding because he was mixed. He wasn't white like the rest of the

The story might be true, or it might be a setup.

It's a soft spot, I think, for most people. When they hear that you've had a

traumatic childhood, they're willing to forgive so many things because they say,

wow, look at everything you've overcome.

Maria Konnikova, author of The Confidence Game, has spent years

psychology of con artists and their victims.

And so he taps into that right away. He's the victim. You're not going to be

victim.

As Stratos continues his story for Hack, It all seems plausible.

Young and handsome, Stratos says he heads off to modeling school.

There, he becomes friends with beautiful Nicole Mitchell.

He is 16, she is 14, and destined to be discovered.

Eleven years later, she marries comedian Eddie Murphy.

And Stratos also gets a claim to fame.

He tracks down his father, who is now married to Nancy Wilson.

the legendary jazz singer.

She is a huge boost to Stratus' credibility.

But then

Stratus tells Hack his big lie.

He says he made a fortune as an early investor in AOL and now has millions

invested in the Middle East in oil.

He said he had an endless amount of funds. He said he would never be able to

spend the amount of money that he had.

His Social Security records tell a different story.

The last time he ever reports any income is 1993.

$30 ,000.

But Hack is not interested in Stratos' money.

What is most important to him is that Stratto shares a dream of his.

I was impressed by the fact that this was a guy that didn't like violence

on TV or in the movies.

And I thought, it is time for us to return to a gentler time, like the glory

days of Hollywood, the golden age, and this guy agreed with that.

With Richard Hack clearly a believer in Troy Stratus, Stratus takes off.

He heads to Vancouver in British Columbia.

He opens a production company in the prestigious Waterfall building and hires

Tamara Hegan as part of his team.

You had a bunch of young people who had no experience in the industry at all

that were being told that they were amazing, they were going to be able to

it big.

Stratos tells his team they will be working with Britney Spears and Donna

Summer. We bought in 100%. We believed in him. We believed in his vision.

And he is big on making promises.

He was going to buy us all a house. I was going to have a house.

And sometimes Stratos' promises are particularly manipulative.

He had a habit of picking up waiters, lavish them with gifts, convince them

he was going to make them the next big thing, get them to sign an agreement,

slowly but surely it would come around to, you know, it's a more intimate

relationship is what he's looking for.

And while he is pursuing relationships with young men, he also begins a

relationship with a woman with just what he needs, money.

She is a realtor worth millions named Vivi True.

Vivi True is the name of this very lovely woman who was enamored with Troy.

She was in love with this guy for sure.

And showed that love by affording him capital.

Giving him money.

Stratos tells True his money is tied up overseas.

That he just needs a loan.

She doesn't know that he told the same story to another woman who loved him

a few years before.

Stratos has perfected the sweetheart scam.

It relies on...

kind of this emotional need that all of us have. I mean, we want love.

And Stratos knows that when someone loves him, he is in complete control.

He would blackmail her with his affections.

If she got too upset about the money, then, well, I don't think that we should

date. I'm not going to have dinner with you. I'm not going to see you.

And Vivi True caves to his threats.

Over several years, she loaned Stratus an astounding $10 million.

And he blows through it as if the supply will never end.

He would buy clothing, cars. He walked in and bought a G -Wagon

from Mercedes -Benz dealership for cash.

As he goes through B .B. True's life savings, his big projects are going

nowhere.

And if anyone challenges Stratus in any way, There is hell to pay.

One of his favorite tactics was public humiliation.

He had me stand up in the middle of an open office, and he yelled at me for a

half an hour, called me stupid, incompetent, lazy, idiotic.

His staff's initial excitement has turned to fear and dread.

It got to be really scary.

And you got to a point where you were like, what have I gotten myself into?

And so the entire team quits.

Stratos has tapped Canada for all he can.

It's time to move on.

Next stop, Boston.

Richard Hack is now living nearby.

Stratos arrives with a big idea.

To build a film studio here.

But not just any studio.

RKO Radio Pictures.

RKO Studios was the creator of some of Hollywood's most beloved films.

The idea plays directly into Richard Hack's dream.

I was certain that Troy was sincere with his idea about bringing, you know,

romance back to movies.

To negotiate the necessary land deals, Stratos gets in touch with high -end

estate broker Jeff Goldman.

I had my doubts, but what enhanced his credibility is the fact that Richard

was so deeply involved in all of his plans, and Richard Hack is a verifiable

person.

One time we were out at dinner, and Richard says to me, turn on 60 Minutes

Sunday night. I'm going to be on 60 Minutes.

And I turned on 60 Minutes, and lo and behold, there's Richard Hack.

Goldman dedicates a year and a half to Stratos' proposal putting aside other

income -producing projects.

And then, just as the deal is about to close, Stratos pulls out.

And Jeff Goldman, who feels used and burned, thinks he knows exactly who Troy

Stratos is.

He's the greatest con man, in my opinion, that ever lived.

But Richard Hack still has faith in Stratos, and in 2004, he gets a

offer from his good friend.

He said that he had enough work to keep me in business writing movies, and he

was willing to sign an $11 million, 11 -movie contract with me to keep the

exclusive to him.

The first project, called The Pharaonic Prophecies, will be shot in Egypt.

Three spectacular two -hour movies.

It was the first time that I actually had essentially sold my

soul to this person that I believed would make

these movies happen.

Troy, more than anyone, he's selling dreams.

The movie that you want, I can get it made. The house that you want, I can get

it built. The business that you want, I can get it started.

I mean, he is brilliant in figuring out what drives you and then using that to

get everything that he can from you.

Next on American Greed, Nicole Murphy becomes Troy Stratus' perfect mark.

When I was going through my divorce, that's so emotional. I'm like...

confided in my friend.

As he approaches his 40th birthday, Troy Stratus is now living in Florida,

keeping up appearances as the extravagant multimillionaire who has

burn.

But he is, in fact, running low on cash.

The answer to his money worries shows up in the headlines of entertainment news.

After 12 years of marriage and five children, Nicole and Eddie Murphy are

getting divorced.

Stratus reaches out to his old friend Nicole soon after.

Murphy later tells a Sacramento TV news crew how she welcomed his offers to

help. I believe that he was my friend.

I mean, when I look back, Troy and I had such a great relationship.

We were like the best of friends.

And what a friend he is.

Eyeing her multi -million dollar divorce settlement, Stratos makes a generous

offer to share his Middle Eastern investment opportunities.

Mr. Stratos indicated he would be one that could actually be there to protect

her money from other greedy family members or friends who might be lurking

the wings.

There is just one requirement.

Stratos says she needs his name to get access to the investments.

And so Troy Stratos and Nicole Murphy open a joint trust, and she deposits $10

million from her divorce settlement.

Troy has total control of her money.

She totally trusts Troy 100 % that he's going to invest the money overseas.

Murphy moves to L .A., and Stratos, saying he will take care of selling her

house, sets up his production company there.

He hires a local bookkeeper, Sherry Farley.

Troy Stratos tells her that he is a billionaire.

He needed somebody to be by his side as his finance person, and he wanted that

to be me.

And I was very flattered and thought, cool, okay, this sounds fun.

Sherry has a son, Sam, who works for a human resources company.

He also gets tapped by Stratus.

He said, Sam, I need someone like you.

I said, oh, okay.

He said, I'm building this empire.

I want you to help me do that.

Sam is wondering if this guy is for real.

When he Googles Troy Stratus, almost nothing comes up to confirm his

But then there was Nancy Wilson and Nicole Murphy and all these other

Had to be true.

Sam quits his job and signs on with Stratus.

He hires Chris Budenbender to take care of the cars Stratus claims are his.

A Mercedes G -Wagon, a customized Mustang, an Aston Martin, a Rolls

-Royce Phantom, and more.

So I'm jaw -dropped open, like, yes, I get to work on these

cars. This guy's got something going on, and I'm not asking too many questions

right now.

Jake Bartlett, a substitute school teacher, is hired by Stratos to do odd

that feel truly odd.

I think the first time I just organized magazines for him.

He wanted them alphabetized, so I organized the magazines. Then he had

and some movies, and he had me organize those.

But the primary assignment of Stratis' new entourage seems to be witnessing how

rich and generous he is.

Matt Antropos is a college student at the time.

We went to the movies here in Sacramento, and he turns around, he's

I'm going to get everybody's concessions today, and everybody in line behind us.

Also, he paid for all of their concessions. And I was like, what in the

This is the weirdest.

thing that I've ever witnessed.

But nothing screams excess more than the party he throws at Christmas time.

It starts with extreme shopping at Costco.

We just walked aisle to aisle and he would just grab stuff and throw it in.

And he would say, if you want anything, grab it.

No, no, we're fine.

And we'd fill up a cart, grab another cart.

We'd fill up that cart, grab another cart.

And on the day of the big event, The decorations are festive. The presents

extravagant. There is even a snow leopard for children to pet.

And what is most surprising is that all this effort is not for Stratus'

celebrity friends.

It's for the hired help.

He doesn't know the window guy. He doesn't know the maid service. He

know the landscaper. You know, he doesn't know them, but they were

But make no mistake, this party is all part of the con.

What are you going to think when you hear that, you know, this businessman

invited his window washers to the party? You think, oh, my God, you know, what a

man of the people. What a great person.

As 2006 comes to an end, the group of guys Stratus keeps in tow are starting

seriously question what Troy Stratus is really up to.

We weren't going anywhere. We weren't starting anything.

He's got like an entourage around him of people that depend on him for work.

Just for the heck of it.

Up next, the simple truth about how Stratus is helping Nicole.

This was just Troy Stratus blowing through her money like a drunken sailor.

In early 2007, Troy Stratus and Sam Farley arrive in L .A. to interview

potential personal staff for Stratus.

They check into the Beverly Wilshire Hotel.

Stratus has reserved the presidential suite, $5 ,000 a night.

Looking back, I should have bought something with a... Troy put down his

and it got declined.

And I saw that...

Troy was probably going to lose it at this point, so I quickly grabbed my card

and threw it down and said, oh, here, just put it on this card.

Knowing as a corporate expense, I could expense it.

Sherry Farley is also covering some of Stratus's expenses and dealing with a

constant shortage of cash in his bank account.

But she learns not to question him.

When he would yell at you, it was explosive.

It was abusive. It was... You didn't want it to happen, and so you started to

anything to not get yelled at.

By now, Stratos is tired of California and moves back to Florida.

He brings the California entourage with him.

Each day was filled with mindless...

We would all meet together for breakfast. Then we'd go to the gym.

Then we'd go to lunch.

And while Stratos drives the rolls around Fort Lauderdale, Sherry is

to keep the bills paid.

At this point, Sam and Sherry are still carrying expenses on their own credit

cards that have not been reimbursed.

And in February, terrible news.

Sherry Farley can't make the payroll.

Troy kept telling us again and again, I'm trying to transfer the money in. You

don't understand what it takes to get money transferred from Swiss banks, from

Dubai.

Sam Farley is already living on credit cards.

He is falling behind on his mortgage and has a family to support.

I was scared to death. I think it was the first time that I really felt panic

that this was all just smoke and mirrors.

And then the next month, again, no paycheck.

Missing out on one check was tight.

When the next check didn't come, then we were in despair.

There is one last hope.

Stratos receives a bank loan and the money is deposited into his account.

But it does not last long.

It came in and it went out.

And that's when I knew.

We're not getting paid.

As the reality of their situation sinks in, Nicole Murphy is also in a state

of panic.

Stratos has refinanced her houses for about $3 million.

Her jewelry, worth as much as $1 million, is missing.

Collection agencies are calling.

Her insurance is unpaid.

She starts recording her phone conversations with Stratos.

I'm just stressed. I'm in a situation. I have bills.

I have loans.

I have all this. I can't take it right now.

Stratus is nothing but reassuring.

I'm going to send a full amount of $10 .75 million into that account within

of my arrival.

But she is suspicious and hires Bill Branscombe, a private detective.

to investigate Troy Stratus.

My job was to take the information available, track the money.

It didn't take long to realize that this was Nicole's money, and you could track

where it was going.

This was just Troy Stratus blowing through her money like a drunken sailor.

In a little more than a year, he has blown through more than $10 million of

Nicole Murphy's money.

and left the Farley family strapped for cash and emotionally devastated.

It's the humiliation of giving your heart and your life,

almost literally, because that's what I did. That was my life at that point, to

somebody who just has no regard for it, just throws you away like you're a piece

of trash.

And Sam and Sherry decide they need to warn others.

Part of the reason I was in the position I was is because he was the richest man

that no one had ever heard of.

And so they put together a website named I Met Troy and post their stories.

I started getting contacted from people who had worked for Troy previous to me.

Stories from people from Canada, from Boston.

As news of the website spreads, Stratus disappears.

Up next, Troy Stratus gets his break into French television.

As a con artist.

In 2008, Richard Hack has moved to Fort Lauderdale.

The $11 million contract he signed with Troy Stratus four years earlier has gone

nowhere.

And then in April, he gets a call from Stratus.

Come to Cairo for the weekend, he says.

He has scheduled a press conference to announce their film, The Pharaonic

Prophecies.

I land in Cairo. I go to the hotel.

And of course, there was nothing.

There was no press conference set up. It was delayed.

But Stratus insists that because he is already there, Hack should scout filming

locations.

Soon, the weekend trip becomes a month.

And then Stratus has another idea.

Let's go to Dubai.

Turned out to be 30 more days with the same clothes.

In Dubai, looking at locations in Dubai.

The trip to Dubai is one of the last times Hack is with Stratos.

Someone he thought he knew for 18 years, but someone he does not know at all.

As Hack heads back to the United States, Stratos is on his way to Europe.

He eventually turns up in Paris, but not as Troy Stratos.

as someone named David Burton.

And where he turns up is on the evening news.

The reporter describes Stratos as an American scammer who defrauded

this man, Gary Peters, a luxury real estate agent working in France, out of

thousands of dollars.

He alerts police, who discover that Stratos owes his hotel...

$40 ,000.

And when police search the room of David Burton, they find a passport with the

name Troy Stratus.

And when they Google that name, Bill Branscombe's reports come up.

Branscombe is invited to Paris to testify.

The judge found it persuasive and they put him in LaSante prison, which if you

do five minutes worth of research is widely touted to be the nastiest prison

the civilized world.

For Richard Hack, the news of the arrest is a total surprise.

I'm thinking, arrested?

And I'm hearing from people that he didn't pay his bills at a hotel.

And even then, I figured, how can that be? You know, this guy's independently

wealthy.

And then, Hack receives letters Strato sends from prison.

In one letter, he describes the truth about Troy.

He writes, I am a very generous man who has told many lies to many people. I

regret that.

At the same time, stories begin to surface claiming that Troy Stratus stole

millions of dollars from Nicole Murphy. And now Richard Hack understands.

It was all a sham, a con.

And it was then that it dawned on me that I was the front man for

legitimacy.

Because I wasn't legit, I felt totally betrayed.

I not only believed in him as a director, producer, I believed in him as

friend.

Having turned down books and projects with others to work with Stratus, Hack

finds himself forced into bankruptcy.

When that happens, and the shroud is pulled off of the set, and you realize

it's... not real furniture, that it's just cardboard boxes that you're looking

at, you feel very stupid. You feel very dumb.

Next on American Greed, Stratos moves out of prison and into millions.

He ultimately gave Troy Stratos the entire $11 .25 million.

In 2009, Troy Stratos is released from La Sante prison in Paris after his bail

is paid.

A judge dismisses his case a year later.

Stratos heads back to the United States, to Southern California.

His situation could not be much worse.

He was broke.

He couldn't open a bank account. He couldn't rent an apartment. He couldn't

lease a car.

Will Nystrom is a Boston attorney who represents Stratus' last victim.

At this point, the name Troy Stratus is synonymous with con man.

He was radioactive.

But that does not faze Stratus. All he needs is a new identity.

He starts using the name Ken Dennis and says he is a representative of the

Mexican businessman Carlos Slim.

At the time, one of the richest men in the world.

A brilliant choice.

It indicated that there was unlimited wealth behind Mr. Stratos and that could

open doors for him that might otherwise exist.

It's not long before the victim named Tim Burns falls into his lap.

Tim Burns was an investment advisor in Philadelphia.

who was just cutting his teeth.

At the time, Facebook is planning to go public.

Facebook filed the necessary paperwork to sell shares on the stock market. And

Burns has 50 investors who have pooled $13 million to buy Facebook shares

the IPO, if he can get his hands on some.

And along comes a guy named Ken Dennis.

who says his boss, Carlos Slim, has extra shares of Facebook stock.

He also claims in a phone conversation recorded by Burns to have an inside

with Facebook's famous founder.

And Burns does take

the ride.

He agrees to buy two million shares of Facebook stock.

and wires $2 .8 million to Ken Dennis, a .k .a. Troy Stratus.

What Stratus does not know is that Tim Burns is a perfect victim because Burns

has a secret.

Tim Burns is in a difficult position himself. He's in a desperate situation.

He had been embezzling money from his clients.

He needed to repay this money, and he also wanted to make money for himself.

And that is why it is easy for Stratos to continually up the ante to promise

Burns more shares and demand more money.

He bit so hard on this story. He literally threw the handle

after the ax and ultimately gave Ken Dennis, Troy Stratos,

the entire $11 .25 million.

And that money is slipping through Troy Stratos' hands and disappearing into

gambling losses in Las Vegas, plastic surgery for Stratos, five new cars, and

some very nice clothes.

By the time that Troy Stratos had conned Tim Burns, he was spending, on

average, $1 million a month.

Not bad for a guy who was completely broke less than a year ago.

Meanwhile, private detective Bill Branscombe is semi -retired, living on

family farm in Kentucky.

His investigation of Troy Stratus is a distant memory when he gets a call.

You know who this is? No, of course I have no idea who this is.

He says, well, you're not going to believe this, but this is Troy Stratus.

I said, okay.

Stratus tells Branscombe he is a changed man, now working in advertising.

and needs Branscombe's help locating his former victims in order to make things

right.

He flies Branscombe to Las Vegas in a private jet.

And then this seasoned private detective who knows full well what Stratos has

done in the past buys the Master Khan's new story that he is producing

commercials for the Super Bowl.

I had no trouble believing that these commercials were bound for the Super

They were that good.

Stratos is selling the same story to all of his victims, saying he has found new

success and will pay them what he owes if they agree to take down any negative

information about him on the Internet.

That was a tough decision, because on the one hand, I needed the money

desperately, but I wanted the world to know about Troy.

In the end, the public information on Stratos is removed, and his victims are

paid back with the money from Tim Burns' clients.

But that does not solve Stratos' problems.

On December 20th, Stratos is in his condo outside of L .A.

There is a knock at the door.

It's the FBI.

with a warning for his arrest on charges of fraud against Nicole Murphy.

The FBI team in Los Angeles went out to his place in the early morning,

and he didn't answer the door. He was hiding in his bathroom.

I get this call from Troy Stratus, who is in hysterics.

He was calling me from his bathroom.

And it's like the FBI is banging on my door. What do I do?

And I'm like, answer the damn door before they break it. And hung up.

The FBI does break down the door.

And Stratos is arrested and taken to jail.

And in Philadelphia, Tim Burns cannot understand why Ken Dennis is not

answering his phone.

Up next, a surprise defender for Troy Stratos shows up in court.

I trusted him, and he did a lot for me. He did a lot for others.

For several days in December 2011, Tim Burns has been desperately trying to

reach the man he knows as Ken Dennis.

who has not responded to his calls, texts, or emails.

And finally, a text comes in from Ken Dennis' phone apologizing for the

communication break.

It says that he was in a remote location with difficult cell service.

Remote indeed.

Ken Dennis, who is really Troy Stratus, is actually sitting in a cell at the

Sacramento County Jail.

He has convinced a friend to send Burns text messages assuring him that all is

well. And you kind of get a sense of a window into Troy Stratus' soul here.

He is in prison, but he is literally keeping up the calm.

Eventually, Burns does some digging and Stratus' name comes up. He goes to the

FBI looking for some answers.

Tim told us that he didn't know Troy Stratos and never met Troy Stratos, but

thinks that Troy Stratos may have had something to do with a Facebook stock

transaction he was trying to complete.

At that point, Tim Burns learned some very bad news.

He has given $11 .25 million to a known con artist.

And that means he is forced to admit his own improper use of his client's money.

Burns later pleads guilty to charges of mail and wire fraud and is sentenced to

five years in prison.

And the list of counts against Stratos grows.

But he has an unlikely defender.

At a hearing to determine if he can be released from jail, Vivi True, who

him $10 million, takes the stand to vouch for him.

I loaned Troy the money because...

I trusted him, and he did a lot for me. He did a lot for others.

It is so common for victims to stick by their con artists, especially in the

case of a sweetheart scam like this one.

You'd go through all of these hoops to say that, no, this is in fact not a con

artist, and really it wasn't so bad, because then you're not really a victim.

In an email to American Greed...

Stratus writes that the stories his victims tell are so far -fetched that

approach science fiction.

But a jury disagrees and finds him guilty on all counts in the Facebook

fraud.

Shortly after, he pleads guilty to the Nicole Murphy fraud.

He is sentenced to 21 years, 10 months in prison.

Sam Farley is there.

I got to see him in his prison jumpsuit, and I never felt

closure until that moment when I saw him get up and walk back into his

prison cell.

For Nicole Murphy, watching Stratos in the courtroom is infuriating.

If I could have jumped over there and choked him.

Out of him I would.

Trust me. I say if I was a dude and I had access to him, trust me, it would be

on. I'd just see through him.

For Richard Hack, the emotion is not anger.

No, I was never furious. I was so disappointed.

I was on the verge of being despondent.

But he still holds the dream that he thought Straddle shared.

A returning romance to Hollywood.

One day, we'll get those projects made, I think.

But that friendship will never be restored because it wasn't there to

with. It was all an illusion that you believe so sincerely that

nobody can convince you otherwise.

Looking back now, his victims struggle to make sense of what Troy Stratus did

them.

I don't think other people are real to Troy.

I think they're like extras in the film of his life.

And he's the only real character, so what happens to him is important, and

everybody else is sort of inconsequential. They just don't matter

I think what he got, actually, was to feel important.

The child that was thrown in the barn was important now. People respected him.

He got some respect that he never had growing up. That's the only thing I can

think of.

But others say that gives him too much credit.

Most likely, what a schemer like Stratos craves is power.

It's all about knowing that you have power over other people, over their

over their realities.

It's kind of like you're playing God.

Really, you are directing the course of someone else's life. They trust you,

they believe you, and you know that you are the one pulling the strings.

And as for his life in jail, reports say that Stratos was receiving threats for

scamming his fellow inmates and not paying gambling debts.

Perhaps Troy Stratos is a con who can't stop conning.

On the next American Greed, Rameel Robinson, money, back, and the big tie.

This basketball superstar takes a fall and scams his mother on the way down.

American Greed, next.

CNBC, get yours.

The early bird gets the worm. And the corner office, too.

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