New York CEO pleads guilty to defrauding more than 50 investors, including two in Georgia

A New York-based venture capital firm CEO plead guilty to a wire fraud conspiracy that defrauded more than 50 investors, including two from Georgia, for nearly $6 million, according to a DOJ release.

George Iakovou, 30, pleaded guilty to one count conspiracy to commit wire fraud on August 8 before U.S. District Judge Clay Land, according to the release.

“George Iakovou defrauded more than 50 people from around the country of millions of dollars, using these stolen funds to buy luxury items and travel in private jets,” said U.S. Attorney Peter D. Leary in a statement.

Iakovou, CEO of Vika Ventures LLC, advertised that Vika had access to buy pre-IPO (intial Public offering) in private companies such as Palantir, SpaceX, Airbnb, and Stripe, according to the DOJ.

The DOJ says Iakovou then claimed that once the private companies went public and the six-month lockout period ended, Vika would distribute the purchased shares to investors.

Iakovou neither had access to pre-IPO shares nor did he own the shares prior to soliciting investors, according to the DOJ.

The DOJ says that victim-investors paid Vika $5,958,505 for the purchase of the pre-IPO shares, but never received their promised shares.

Iakovou used the money provided by investors to charter private jets, artwork, luxury clothing and other purchases, the DOJ says.

Some of the purchases Iakovou made include a 2021 Corvette Stingray for $135,528 and a $231,799 for a Patek Philippe timepiece, according to the release.

The DOJ says Iakovou faces a maximum sentence of 20 years in prison followed by three years of supervised release and a $250,000 fine if convicted.

His sentencing is scheduled for Dec. 19, according to the release.

This story was originally published August 15, 2023 at 2:34 PM.