SEC accuses former Campbell mayor of defrauding investors

Staff report

CAMPBELL

The U.S. Securities and Exchange Commission has filed a document that reports George Krinos, the former Campbell mayor, purportedly deceived investors and made unregistered stock sales through Krinos Holdings, his business in Poland.

The document, filed Oct. 16, says Krinos, 36, of Poland used more than $50,600 of the money on casinos and strip clubs in 2012. He also used more than $35,000 of the money on casinos and strip clubs in 2013, according to the document.

Krinos could not be reached to comment Thursday.

Krinos Holdings formed in 2012 to provide money to startup companies. The report found that Krinos Holdings never provided any money to startup companies and that Krinos had never disclosed to investors that their money was being used to pay for Krinos’ personal expenses.

The report cites the chief financial officer of Krinos Holdings questioned Krinos’ spending in summer 2012, but he was fired by the end of the year.

The new chief financial officer also questioned Krinos’ actions. The SEC report quoted Krinos saying “he could use the [company’s] funds for any purpose because he was CEO” in July 2013.

Krinos has from Nov. 15 to Dec. 15 to provide an answer to the allegations at a public hearing.

An administrative law judge will have 300 days after the hearing to make a decision on the case.

Krinos was mayor from December 2009 until he resigned Jan. 4, 2011.