It's not a terrible reason at all, as it's fairly likely the original intent behind his name in Japanese. "Der Richter" is also the original name of Penance in the Japanese versions of the game that have it.
For another piece of trivia related to this tangent, Ozma's name as shown in the original design diagram for FFIX is "O.Z.M.A." It's possible the localization team either didn't have access to the source and just translated directly from the pronunciation, or simply decided it was easier to call "Ozma."
