Andrew Hamilton Jacobus: How a $94 Million Investment Fraud Exposed Critical Red Flags

Have you been watching the news lately and seeing stories about investment scams?

We hear you. It feels overwhelming.

On November 14, 2025, we learned some major news about a case that hits close to home for all of us who work hard to protect our money. Andrew Hamilton Jacobus, a 64-year-old from Fort Lauderdale, admitted guilt for orchestrating a massive fraud scheme that cost investors $94 million. According to the U.S. Department of Justice, this scam ran from 2004 to 2023 and primarily targeted Venezuelan nationals through two companies he controlled, Kronus Financial Corporation and Finser International Corporation.

What makes this case so troubling is how Jacobus posed as a seasoned financial advisor while secretly using client funds for luxury personal expenses and Ponzi-style payments to earlier investors. The Securities and Exchange Commission (SEC) found that he even stole approximately $3.2 million from Catholic Church clergy and dioceses in Venezuela.

In this article, we’ll walk through what happened, what details we know, and most importantly, how we can all stay protected from similar schemes.

Key Takeaways

• Who: Andrew Hamilton Jacobus, a Fort Lauderdale financial advisor, pleaded guilty on November 14, 2025, to wire fraud and money laundering in a nearly 20-year scheme that defrauded investors of $94 million.
• How: The fraud operated through Kronus Financial Corporation and Finser International Corporation from 2004 to 2023, promising access to secure investments and high-yield returns that never materialized.
• Victims: Venezuelan nationals were the primary victims, with approximately $3.2 million stolen from Catholic Church clergy and dioceses, while $7.8 million was used for Ponzi-style payments.
• Methods: Jacobus forged account statements and falsified documentation while diverting client funds to luxury personal expenditures including mortgages, real estate, travel, and luxury vehicles.
• Penalties: He faces up to 20 years in federal prison for each count of wire fraud and money laundering, with sentencing scheduled for February 2025.
• Context: According to the FBI, investment fraud led all fraud categories in 2023 with $4.6 billion in losses, representing a 21% increase from 2022.

Former Financial Advisor’s Guilty Plea in $94M Venezuelan Scam

Andrew Hamilton Jacobus admitted guilt to serious federal charges in a Florida court. We now know the full scope of what he did and who he hurt.

The Scale of the Fraudulent Scheme

The numbers are staggering. This scheme totaled $94 million in investor losses over nearly two decades.

Jacobus operated this fraud through entities he controlled. Between 2004 and 2023, he solicited funds by promising access to secure investment products and high-yield returns. According to court documents, he raised approximately $39.7 million from about 40 clients through these promises.

But here’s what actually happened: instead of investing the money as promised, Jacobus used the funds for himself. He forged account statements and falsified documentation to cover his tracks.

Federal prosecutors revealed that Jacobus diverted client funds to luxury personal expenditures and Ponzi payments in classic fraud fashion. This wasn’t a quick scheme. It operated for 19 years, allowing the losses to compound year after year as he continued to recruit new victims.

Venezuelan Nationals as Primary Victims

The people who lost money in this fraud were primarily Venezuelan nationals. This targeting wasn’t random.

Jacobus had connections to Venezuela through a currency exchange provider he ran there. He used these connections and trust within the Venezuelan community to recruit investors. According to the SEC, approximately $3.2 million came specifically from Catholic Church clergy and dioceses in Venezuela.

The impact on this community was severe. Many victims included elderly individuals and religious leaders who trusted Jacobus with their life savings. One report from the Miami Herald noted that victims included a renowned sculptor, a plastic surgeon, and a wealthy businessman.

What makes this especially painful is that $7.8 million of the stolen funds were used to make Ponzi-like payments to earlier investors. This created a false sense of security that lured even more people into the trap.

Timeline and Legal Proceedings

Let’s get the dates straight so we understand how this case unfolded.

• 2004–2023: Fraud operations period — 19-year scheme duration
• 2020: SEC censure for excessive fees — early warning sign of misconduct
• May 2025: SEC files civil charges — initial $17 million loss estimate
• November 14, 2025: Guilty plea entered — full $94 million fraud revealed
• February 2025: Sentencing scheduled — faces up to 40 years total

Jacobus pleaded guilty on November 14, 2025. He was charged with wire fraud and money laundering. He faces up to 20 years in federal prison for each count.

His sentencing is scheduled for February 2025. A federal district court judge will determine the final sentence using the U.S. Sentencing Guidelines and other factors.

Here’s an important detail: the SEC had actually censured Jacobus back in 2020 for charging what they called “exorbitant” performance fees. He was registered with the SEC through his firm Finser International Corporation between 2010 and 2021. Then in May 2025, the SEC filed separate civil charges against him, initially estimating losses at $17 million before the full $94 million scope was revealed.

This case is being prosecuted by the U.S. Attorney’s Office for the Southern District of Florida, with asset forfeiture handled by federal authorities.

How the Scheme Operated

To protect ourselves, we need to understand exactly how Jacobus pulled this off for nearly two decades. The methods he used are important lessons for all of us.

The Business Structure and Tactics

Jacobus created an elaborate front using two companies. He controlled both Kronus Financial Corporation and Finser International Corporation, using them as legitimate-looking vehicles to collect investor money.

His pitch was convincing. He promised clients access to IPOs, private investment funds, and certificates of deposit with returns far above market averages. According to court documents, he falsely portrayed himself as a seasoned financial advisor managing legitimate investment portfolios.

Here’s what made it believable: Jacobus was actually SEC-registered through Finser from 2010 to 2021. This gave him an air of legitimacy that helped him gain trust, especially with Venezuelan clients who knew him through his currency exchange business.

When clients asked about their investments, Jacobus had answers ready. He provided forged account statements that looked like they came from legitimate broker-dealers. These fake statements showed healthy balances and impressive returns, keeping investors satisfied and unaware of the theft.

Red Flags That Were Missed

Looking back, we can see warning signs that should have raised alarms. Understanding these helps us spot similar scams in the future.

First, the consistently high returns. FINRA warns that any investment showing remarkably steady returns regardless of market conditions should raise suspicions. Even the most stable investments experience volatility.

Second, the documentation issues. Many investors discovered that Jacobus was also acting as custodian of their assets. FINRA notes that it can be easier for fraud to occur when an investment professional controls both the investments and the account records.

Third, the excuses started piling up. By 2021, when Jacobus stopped paying some clients altogether, he blamed “liquidity issues and regulatory restrictions.” Some clients even received emails supposedly from an offshore law firm saying their account closures wouldn’t be honored for 12 months. According to the SEC complaint, that law firm never sent those emails. The domain was registered to Jacobus himself.

Key warning signs that should trigger immediate investigation:

• Advisor acts as both investment manager and account custodian
• Returns remain unusually consistent regardless of market conditions
• Account statements lack third-party verification or official letterhead
• Withdrawal requests are met with excuses about liquidity or regulatory issues
• Communication supposedly from law firms or regulators can’t be independently verified

The Money Trail

Where did the $94 million actually go? The breakdown shows the true nature of this fraud.

According to the SEC, over $17 million went directly to luxury personal expenditures. This included Jacobus’s mortgage payments, property taxes, private school tuition, real estate purchases, travel, and luxury vehicles. He also spent money on designer shopping.

Another $7.8 million was used to make Ponzi-style payments to earlier investors. This is the classic pyramid structure. New money coming in was used to pay fake “returns” to existing investors, creating the illusion of a successful investment strategy.

Additionally, Jacobus diverted $10.8 million directly from brokerage accounts he managed. He had access to these accounts and simply transferred the funds to himself while providing clients with falsified statements showing the money was still there.

The remaining funds were likely lost through poor investment decisions or additional personal spending. When authorities finally caught up with Jacobus, there wasn’t enough money left to repay most victims.

Legal Consequences and Federal Sentencing

Now let’s talk about what happens next and what penalties Jacobus faces. Understanding the legal process helps us see how seriously the justice system treats these crimes.

Federal Charges and Maximum Penalties

Jacobus pleaded guilty to two specific federal crimes: wire fraud and money laundering. These aren’t minor offenses.

Under federal law, wire fraud (18 U.S.C. § 1343) carries a maximum penalty of 20 years in federal prison. Money laundering violations can carry another 20 years. Since these are separate counts, the penalties can stack.

This means Jacobus faces a potential maximum of 40 years in federal prison. He could also face fines up to $1 million if the fraud involved a financial institution.

According to the Department of Justice, a conviction for money laundering may result in a much more severe sentence than a conviction based solely on wire fraud. The sentencing guidelines specifically account for the laundering of criminally derived funds.

Sentencing Guidelines and Considerations

Federal judges don’t just pick a random number. They follow the U.S. Sentencing Guidelines, which use a complex calculation system.

The guidelines start with a base offense level. For wire fraud cases involving amounts this large, the offense level increases dramatically. Under Section 2B1.1, the loss amount is the primary factor. With $94 million in losses, we’re looking at substantial enhancements to the base level.

Additional factors that increase the offense level in this case include:

• The number of victims (around 40 clients, many of whom were vulnerable individuals like elderly persons and clergy)
• Sophisticated means (forging documents, creating fake emails, operating for nearly 20 years)
• Abuse of a position of trust (acting as a registered investment advisor)
• Use of multiple entities to facilitate the fraud (Kronus and Finser corporations)

Federal judges can sentence outside the guidelines range, but they must explain their reasoning. Given the scale, duration, and impact of this fraud, the sentence is expected to be substantial.

Asset Forfeiture and Restitution

Sentencing isn’t just about prison time. The court will also address what happens to any remaining assets and how victims might recover money.

Asset forfeiture is being managed by federal authorities. This means they will seize any property, accounts, or other assets that Jacobus purchased with stolen funds. This could include real estate, vehicles, and bank accounts.

Restitution is separate from forfeiture. The judge can order Jacobus to pay back the money he stole. However, in reality, not all harmed investors will be able to recover money, and those who do may receive substantially less than their losses. The distribution process can also take a long time.

The SEC is also pursuing its own civil case. They’re seeking permanent injunctions, disgorgement of ill-gotten gains, and civil monetary penalties. Any money recovered through the SEC action could be distributed to harmed investors through a Fair Fund.

Impact on the Venezuelan Investor Community

This fraud didn’t just cost money. It devastated a community that already faces significant challenges. Let’s look at the human impact.

Vulnerable Populations Targeted

Jacobus specifically targeted people he knew would trust him. This makes the crime even more painful.

The Catholic Church community in Venezuela lost approximately $3.2 million. These were clergy and dioceses who trusted Jacobus with funds meant for their religious work and communities. These institutions often manage limited resources and depend on responsible stewardship.

Elderly individuals were also heavily represented among the victims. Research from the FINRA Foundation shows that nearly two-thirds of fraud victims experience severe emotional consequences like high stress, anxiety, insomnia, or depression. For elderly victims, these impacts can be especially devastating as they have less time to recover financially.

The victims included affluent Venezuelans who had successfully built wealth. A renowned sculptor, a plastic surgeon, and a businessman who owns a crane business were among those who sued Jacobus in 2023 for fraud and civil theft. These weren’t naive investors. They were accomplished professionals who were systematically deceived.

The Trust Factor in Diaspora Communities

Why did so many people from the same community fall victim? Understanding this helps prevent future scams.

Jacobus built his reputation within the Venezuelan community through his currency exchange business. He had real connections and provided legitimate services before the fraud began. This established trust that he then exploited.

In diaspora communities, word-of-mouth recommendations carry significant weight. When successful members of your community recommend an advisor—especially one who shares your background and speaks your language—the trust barrier is already lowered.

According to 2024 data, investment fraud led all categories of fraud in 2023, with $4.6 billion in losses. This represented a 21% increase from 2022. Scammers increasingly target specific communities where trust networks can amplify their reach.

Challenges in Recovery and Support

What happens to victims now? The recovery process is complex and often disappointing.

Several affluent Venezuelans filed civil lawsuits against Jacobus in 2023 after he refused to return their money. But civil litigation is expensive and time-consuming. Even if they win judgments, collecting money from someone who has already spent most of it is extremely difficult.

The SEC and Department of Justice cases may provide some recovery. Sometimes a successful enforcement action results in recovered funds being distributed to harmed investors. But victims typically receive substantially less than their losses, if anything at all.

For Venezuelan nationals, there’s an additional layer of complexity. Many may face challenges accessing U.S. legal resources or understanding the federal court process. The emotional toll is also significant, especially for victims who are clergy or religious leaders responsible for community funds.

Protecting Yourself from Investment Fraud

Now we get to the most important part: how do we make sure this doesn’t happen to us or anyone we know?

Essential Due Diligence Steps

Before you invest a single dollar, there are specific checks you must perform. These steps are non-negotiable.

1. Verify your advisor’s registration.
   Visit the SEC’s Investment Adviser Public Disclosure website at adviserinfo.sec.gov or use FINRA’s BrokerCheck at brokercheck.finra.org. These free tools show you an advisor’s background, registration status, employment history, and any disciplinary actions. Jacobus was actually registered for years, but his 2020 censure should have been a serious red flag.

2. Understand custody arrangements.
   According to FINRA guidance, you should be extremely wary if an investment professional is also the custodian of your assets. Your funds should be held by an independent third-party custodian like Fidelity, Schwab, or a major bank. You should receive statements directly from that custodian, not just from your advisor.

3. Search online for red flags.
   The FTC recommends searching for the company’s name plus words like “scam,” “fraud,” or “complaint.” Other people’s experiences can alert you to problems before you become a victim.

4. Verify all communications.
   If you receive emails supposedly from law firms, regulators, or financial institutions, verify them independently. Don’t use contact information provided in the email itself. Look up the organization’s official contact details and call them directly.

Red Flags That Demand Immediate Action

Some warning signs mean you should stop immediately and investigate further. Here’s what to watch for:

• Guaranteed returns or promises of no risk. All investments carry some degree of risk. No high-return investment is risk-free.
• Pressure to act quickly. No legitimate investment requires you to act on the spot. “Now or never” language is a manipulation tactic.
• Unsolicited contact, especially through social media. Social platforms are now a leading channel for fraudsters to find victims.
• Account statements that don’t come directly from a recognized custodian.
• Difficulty withdrawing funds or repeated excuses related to “regulatory restrictions” or “liquidity issues.”
• Investment strategies described as “too complex to explain” or “proprietary.”
• Requests to wire money to personal accounts or send payment through gift cards or crypto wallets without clear documentation.

Resources and Reporting Mechanisms

If you spot fraud or become a victim, knowing where to turn is crucial. These resources exist to help:

• SEC (U.S. Securities and Exchange Commission):
  Report suspected fraud at SEC.gov or contact their Office of Investor Education and Advocacy.

• FINRA:
  If the person is a registered broker, you can file a complaint directly with FINRA.

• FBI Internet Crime Complaint Center (IC3):
  For internet-based schemes and wire fraud, submit a report at ic3.gov.

• State Securities Regulators:
  Every state has a securities division that investigates fraud within its jurisdiction. You can find your state regulator through the North American Securities Administrators Association at nasaa.org.

• Investor Recovery Guides:
  The FINRA Investor Education Foundation and Investor.gov provide checklists and guides for victims of investment fraud. Be cautious of “recovery” companies that charge upfront fees—many of these are secondary scams targeting people who have already been victimized.

Conclusion

The Andrew Hamilton Jacobus case is a powerful reminder that investment fraud remains a serious threat, even when perpetrators appear legitimate and well-connected.

Over nearly 20 years, Jacobus stole $94 million from people who trusted him. He used two companies, forged documents, and exploited community connections to build his scheme. His victims included Venezuelan nationals, Catholic clergy, and elderly individuals who lost funds they may never fully recover.

We learned important lessons here:

• Always verify an advisor’s registration through SEC and FINRA databases.
• Insist on independent third-party custody of your funds.
• Watch for warning signs like guaranteed returns, pressure to act quickly, or difficulty withdrawing money.
• Trust your instincts—if something feels wrong, investigate immediately and don’t be afraid to walk away.

Ask yourself:

• Are you checking your advisor’s background regularly?
• Are your account statements coming directly from a recognized custodian?
• Do you fully understand how your money is being invested?

Investment fraud cost Americans $4.6 billion in 2023 alone. By staying informed, asking tough questions, and reporting suspicious activity to regulators, we can help protect ourselves and our communities from schemes like the one Jacobus operated for far too long.