Boardman Man Sentenced to Nearly Five Years in Prison for Defrauding Investors
A Boardman man was sentenced to nearly five years in prison for defrauding investors out of nearly $1.2 million and related tax violations, said Acting U.S. Attorney David A. Sierleja, Stephen D. Anthony, Special Agent in Charge of the FBI and Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
George N. Krinos was sentenced to 57 months in prison. U.S. District Judge Dan Aaron Polster ordered Krinos to pay $1,100,000 in restitution to the victims and $177,000 in restitution to the IRS.
Krinos previously pleaded guilty to a one count each of engaging in a securities fraud scheme and willfully failing to collect and pay taxes for his employees.
Krinos, through his various companies known as Krinos Holdings, engaged in a securities fraud scheme in which he sold through false and deceptive practices securities to numerous victims in Ohio. These securities consisted of debenture notes and private placement memoranda that were not properly registered with the Securities and Exchange Commission.
From 2011 through 2014, Krinos sold these unregistered securities to at least 10 investors in Ohio, causing them financial losses. Krinos sold the securities under the pretense that his investors’ funds would be used for legitimate business purposes, including to provide venture capital to various client companies seeking funding from Krinos Holdings.
This case is being prosecuted by Assistant U.S. Attorneys Om Kakani and Robert J. Patton, following an investigation by the Federal Bureau of Investigation and the Internal Revenue Service – Criminal Investigations.
Key Facts
- State: Ohio
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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