Former Raleigh officer sentenced to 10 years in connection with multi-million dollar investment fraud schemes

 

Date: February 11, 2020

Contact: newsroom@ci.irs.gov

GREENVILLE – Senior United States District Judge Malcolm J. Howard sentenced Gregory Anthony Christos of Raleigh to 120 months imprisonment, followed by three years of supervised release. The Court also ordered Christos to pay $3,760,890 in restitution to various individual and corporate victims, as well as the Internal Revenue Service.

Christos was named in a Superseding Indictment filed on October 18, 2017 charging him with wire fraud, money laundering, and failure to file federal income tax returns. On January 7, 2019, Christos pled guilty to two counts of wire fraud, one count of money laundering, and one count of failure to file tax returns.

According to the charging instrument, statements made in court, and other public information, Christos started his career as a law enforcement for the Raleigh Police Department and Wake County Sheriff's Office and later became the self-described managing partner of Cambridge Global Consultancy ("CGC"), a purported consulting firm through which Christos fraudulently marketed and sold various investment schemes to victims.

As part of one scheme, Christos defrauded multiple victims through his affiliation with Green Energy Corporation ("Green Energy"), a software company with prior operations in Raleigh. For example, Christos solicited one victim to invest $200,000 into Green Energy. Christos forwarded $100,000 of the victim's funds to Green Energy and used the remaining $100,000 to pay for personal expenses. Later, Christos convinced a local engineering firm to invest $2 million into a purported startup business associated with Green Energy. Christos used $1.4 million of the victim's funds to purchase a luxury residence in an upscale development in Youngsville, NC. As part of another scheme, Christos sold Green Energy shares owned by victims to pay approximately $194,000 in criminal restitution; the restitution was ordered following CHRISTOS's felony conviction in Wake County for embezzling from a former employer while serving as chief operating officer.

Additionally, Christos worked as a purported consultant for a victim business based in eastern North Carolina and used his position to defraud the business out of more than $200,000. Christos induced the business to provide his sham consulting firm with funds that Christos falsely and fraudulently represented would be used to provide interest-bearing loans to distressed companies in need. In truth, Christos converted the victim's funds for his own use, including for the purchase of a $28,000 show horse.

Although Christos grossed millions of dollars throughout the offense period, he willfully failed to file federal income tax returns. According to the investigation, Christos has not filed tax returns since 2002.

The Internal Revenue Service-Criminal Investigation and the Federal Bureau of Investigation conducted the investigation in this matter. Assistant United States Attorney Adam F. Hulbig represented the government.