Ex-Adviser Charged With Defrauding Venezuelans, Others in $94M Ponzi Scheme
Federal authorities have arrested Andrew Hamilton Jacobus, 64, of Fort Lauderdale, on charges of wire fraud and money laundering stemming from a years-long scheme that defrauded international investors – most of whom are Venezuelan nationals and include Catholic dioceses and older adults – of more than $94 million.
According to an indictment in U.S. District Court for the Southern District of Florida, Jacobus falsely portrayed himself as a seasoned financial adviser managing legitimate investment portfolios, while instead misappropriating investor funds for personal use and to pay returns to earlier investors.
According to court filings, clients resided in Florida, Venezuela, Panama, Costa Rica, Spain, and Aruba.
Between 2019 and 2023, Jacobus allegedly solicited funds through entities under his control, including Kronus Financial Corporation and Finser International Corporation, promising access to secure investment products and high-yield returns, including the Corfiser SIMI Fund (later known as the Kronus High Yield Fund) and IPO stocks.
According to the SEC’s original complaint, Jacobus misled clients about, among other things, the legitimacy of and returns on their investments, access to their money, and the nature and balance of their investments, including by sending periodic account statements that contained fictitious holdings and balances. The SEC further alleges that despite the defendants’ representations that client funds would be invested in securities, they misappropriated client funds to make payments to unrelated entities and individuals, and to pay for, among other things, Jacobus’s mortgage, property taxes, real estate purchases, travel, and luxury vehicles. In addition, the SEC alleges that through the entities, Jacobus made approximately $7.8 million in Ponzi-like payments to certain advisory clients.
The SEC’s complaint charged Kronus, Finser, and Jacobus with violating Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and Sections 206(1) and 206(2) of the Investment Advisers Act of 1940.
Jacobus was taken into custody by federal agents without incident in Fort Lauderdale and has since made his initial appearance in federal court. According to court filings, the jury trial is to begin on Aug. 25.
If convicted, Jacobus faces up to 20 years in prison for each count of wire fraud and money laundering, in addition to forfeiture of assets and restitution.
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