Friday, February 20, 2015
YOUNGSTOWN
A Hubbard couple has sued George Krinos, a former Campbell mayor, and the Krinos Financial Group Ltd. Inc., accusing Krinos and the company of investment fraud.
Robert G. and Lynda L. Vukovich filed the lawsuit this week in Mahoning County Common Pleas Court, seeking more than $150,000 in damages.
The couple said they contacted Krinos in September 2008, and he sold them an annuity from Allianz Life Insurance Co. of North America in Minneapolis and guaranteed the couple would make money on the annuity.
Krinos sold the annuity to Robert Vukovich, 71, and the annuity’s terms were not in his best interests, the suit said.
The complaint said the annuity did not generate income for the couple and imposed significant penalties for terminating the investment within its first 10 years.
In August 2010, the complaint says, Krinos called the couple to his office, saying they needed to sign documents to keep him out of trouble.
Krinos persuaded them to sign documents switching them to an annuity from Athene Annuity and Life Co. of West Des Moines, Iowa, which also did not produce income for the couple and imposed significant penalties for cancellation within its first 10 years, the suit said.
When they signed the documents, the Vukoviches did not realize they were being switched to Athene, the complaint said.
The couple listed Allianz and Athene as defendants in the complaint, saying the companies knew of Krinos’ improper practices but failed to prevent Krinos from engaging in such practices regarding their products.
Neither Krinos nor Allianz nor Athene officials could be reached to comment.
The couple said they were unaware of the fraud until February 2013, when they met with another financial adviser, who explained it to them.
In another matter, the U.S. Securities and Exchange Commission filed a document last October alleging Krinos deceived investors and made unregistered stock sales through Krinos Holdings of Poland.
The document says Krinos spent more than $50,600 of the money in 2012 and more than $35,000 of it in 2013 on casinos and strip clubs.
Krinos Holdings was founded in 2012 to provide money to startup companies but never provided them money, and Krinos never told investors their money was being used for his personal expenses, the SEC report said.
Krinos was Campbell’s mayor from December 2009 to January 2011.