George N. Krinos Charged in $1.2M Investor Fraud Scheme

A Boardman man is facing federal charges for allegedly running a $1.2 million securities fraud scheme that preyed on investors across Ohio. George N. Krinos, operator of Krinos Holdings, was charged in a two-count criminal information with securities fraud and willfully failing to collect and pay federal taxes from his employees, according to Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.

Krinos sold unregistered debenture notes and private placement memoranda to at least 10 investors between 2011 and 2014, falsely claiming the funds would provide venture capital to client companies. In reality, he funneled the money toward personal luxuries—including lavish spending at restaurants, bars, casinos, adult entertainment venues, and hotels. He also lied about the value of his investment accounts, telling investors he managed $600 million when the actual balance was just $5.

To maintain the illusion of legitimacy, Krinos produced falsified bank statements and letters showing inflated account balances. He promised investors returns that would skyrocket from $.10 per share to $5 or $6 per share—returns that never materialized. At a 2013 shareholder meeting in Boardman, Krinos disguised his personal expenses as legitimate “sales and marketing” costs, further deceiving those who had entrusted him with their money.

The scheme collapsed under the weight of its own lies. Over three years, Krinos bilked more than ten victims, leaving them collectively out nearly $1.2 million. The unregistered securities were never vetted by the Securities and Exchange Commission, and Krinos exploited loopholes by targeting so-called “accredited investors” who met high net worth thresholds—making the betrayal all the more brazen.

Beyond the investor fraud, Krinos also failed to remit $91,495 in withheld federal income and FICA taxes from his employees’ paychecks. Instead of forwarding the funds to the IRS, he kept the money for himself over a two-year period, further deepening the financial harm caused by his actions.

“This defendant lied to investors as means to funding a lavish lifestyle for himself,” said Rendon. Acting IRS Special Agent in Charge Troy Stemen added that Krinos’ victims include not only investors but also employees and taxpayers. If convicted, Krinos will face sentencing determined by the court after review of factors including his role in the offense and any prior criminal record.