The Peterborough midfielder was about to sign a deal at the City Ground before the deal was scrapped after Boyd failed an eye test.
After the decision, Fry was quick to brand the Al Hasawi family, headed by chairman Fawad, as a "disgrace to the game".
Fry said: "I don't know how they can call themselves fit and proper.
"Alex McLeish has been a gentleman over this, it was the owners who pulled out and they are a disgrace to the game.
"We've never had any problems with George and he's in bits. Alex still wanted to do the deal but the owners said no."
Boyd could still seal a move away from London Road when the loan window opens next week.