A Florida investment advisor has pleaded guilty to a long-running scheme that defrauded international investors out of more than $94 million, according to Financial Advisor.
The U.S. Attorney’s Office for the Eastern District of Florida announced that 64-year-old Andrew Hamilton Jacobus of Fort Lauderdale entered the plea to charges of wire fraud and money laundering.
Court documents disclosed that Jacobus ran a classic Ponzi scheme in which he falsely portrayed himself as a seasoned financial advisor managing legitimate investment portfolios, while misappropriating investor funds for personal use and to pay returns to earlier investors.
“Between 2004 and 2023, Jacobus 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,” the U.S. Attorney’s Office said. “In reality, Jacobus forged account statements, falsified documentation, and diverted client funds to luxury personal expenditures and Ponzi payments.” Most of the victims of the scheme were reported to be Venezuelan nationals.
Prosecutors said investors were promised returns as high as 12% and 15%, but added that Jacoby did not invest most of the money he was given and what little did he invest did not produce the profits he had promised investors.
After pleading guilty to the charges, Jacobus faces a maximum penalty of 20 years in federal prison for each count. A federal district court judge will determine a sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
Jacobus was indicted in July for forging account statements and falsifying documents, as well as redirecting client funds, and allegedly accessed the investors’ private bank accounts.
Hyman Cotter PC routinely represents investors harmed when financial professionals and their firms engaged in misconduct that caused their clients investment losses. Our team includes lawyers who have worked for large financial institutions, including Morgan Stanley and UBS Financial Services, and regulatory bodies such as the SEC. If you think your financial professional or firm engaged in misconduct that caused you investment losses, contact Hyman Cotter PC at 312-291-4600 or through our online contact form for a no-cost evaluation of your matter.
