U.S. Attorneys seek to revoke ex-Campbell mayor Krinos’ bond

By Justin Wier



U.S. attorneys seek to revoke the bond of former Campbell Mayor George Krinos, who they allege has started another fraudulent business, according to a filing in U.S. District Court.

Krinos, who served as mayor of Campbell from December 2009 to January 2011, received a 57-month prison sentence earlier this year after pleading guilty to securities fraud and willful failure to collect or pay tax.

He is scheduled to report to the Bureau of Prisons on Nov. 1.

U.S. attorneys, however, believe he presents an ongoing and continued economic harm to the community while out on bond.

Krinos formed and operates Historic Community Rehabilitation, which claims to eliminate blight by obtaining federal, state and local grants to renovate houses, according to the filing.

“Much like his fraudulent ventures into financial advising and home building, Krinos oversells his capabilities to make this goal a reality,” the filing states.

The company was nominally formed by Michael Bobic, an employee in Campbell’s water department, and Krinos told the government he only assisted Bobic in filing incorporation firms, according to the filing.

The company’s website contains stock photographs of locations believed to be in Brazil and Brooklyn, U.S. attorneys claim.

They detail cases in which Krinos targeted communities in Columbiana, Trumbull, Ashtabula, Stark, Summit and Mahoning counties.

Krinos also claimed an individual named “Andrew Rozan” was an attorney practicing in the Youngstown area, according to the filing.

Federal prosecutors believe “Rozan” is Andrew Rauzan, an ex-Campbell police chief who was fired amid sexual-harassment allegations and was convicted on charges of improperly accessing law-enforcement databases.

Rauzan is an unregistered and, therefore, nonpracticing attorney.

The court delayed Krinos’ report to the Bureau of Prisons because of a “somewhat debilitating pain” resulting from gall-bladder surgery.

Krinos claimed part of his liver was removed, but his surgeon told investigators it remained intact and Krinos returned home the same day of the surgery.

He also opened two credit cards and signed for a car loan without advance permission, according to the filing.

Krinos told his pretrial services officer he intends to have his father make monthly charges and payments in an effort to build his credit while he’s in jail, which the filing called “the early stages of a fraudulent attempt to use a proxy to falsely develop a credit history.”

The government agreed to delay filing the information in federal court so Krinos could amass the $1.2 million in restitution he owes his victims. An escrow account was created Jan. 25, but Krinos has deposited only $1,000, according to the filing.

U.S. attorneys said this conflicts with his opening of credit-card accounts and taking out a car loan.

“Either Krinos has income that he has failed to report to the court and the government or used to make restitution payments to his victims, or he has no income and has committed a fraud by lying to the lending institutions that gave him new credit cards and car loans. [Krinos] cannot have it both ways,” the filing states.

When a home-renovation business failed in 2016, which Krinos attributed to negative publicity, he used the earnings and proceeds to start a new business called Merchant Business Consultants instead of making restitution, the filing said. The business claimed to assist companies in obtaining and processing credit cards, according to the filing.

“It is unclear, what, exactly, [Krinos’] new business does,” the filing states.

It also details claims from a civil suit filed by the Ohio attorney general, which resulted in a default judgment in favor of the state, that Krinos was using his middle name to conduct a home-remodeling business when his last name received unfavorable publicity.

Krinos’ initial conviction resulted from defrauding at least 10 investors out of nearly $1.2 million between 2011 and 2014. The victims were primarily elderly people whom he persuaded to liquidate retirement accounts, U.S. attorneys said.

A motion hearing before Judge Dan Polster at 2 p.m. Tuesday in U.S. District Court in Cleveland will determine whether Krinos’ bond should be revoked and if he should be held in contempt of court.

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