Vika Ventures CEO Sentenced for $6 Million Fraud

The U.S. District Court finalized a judgment against Vika Ventures CEO George Iakovou for a $6 million fraud, including prison time and restitution.

July 12, 2024

The U.S. District Court for the Middle District of Georgia has issued a final judgment against George Iakovou, the CEO of Vika Ventures LLC, in a case brought by the SEC. Iakovou was accused of fraudulently raising over $6 million from 46 investors across several states, including California, Georgia, and New York.

Filed in December 2022, the SEC's complaint alleged that Iakovou and Vika Ventures misled investors by offering shares of private companies expected to go public, using false pricing information to entice them. The complaint revealed that the Vika Ventures website falsely claimed participation in major IPOs and funding rounds, which never occurred.

Rather than investing the funds, Iakovou reportedly used the money for personal expenses. He also used fraudulent documents to convince investors of Vika Ventures’ legitimacy as a venture capital firm. The SEC also found that Penelope Zbravos, Iakovou’s then-girlfriend, ignored significant warning signs about the company’s activities, making her complicit in the fraud.

The court's judgment against Zbravos, who had previously agreed to a consent judgment, includes a permanent injunction against future violations and disgorgement and prejudgment interest of over $1.8 million, considered satisfied by restitution in a parallel criminal case. Earlier, the court penalized Vika Ventures nearly $9 million. The SEC’s litigation on this matter is now concluded.

In a related criminal case, Iakovou pleaded guilty in August 2023 to conspiracy to commit wire fraud. He was sentenced on January 3, 2024, to 97 months in prison, followed by three years of supervised release, and ordered to pay nearly $6 million in restitution. Zbravos pleaded guilty to misprision of a felony and entered a pre-trial diversion agreement.