Florida Investment Advisor Receives 20-Year Prison Term for Massive $94 Million Ponzi Scheme
A former Florida investment advisor who masterminded a sophisticated $94 million Ponzi scheme that specifically targeted vulnerable groups including Venezuelan nationals, Catholic dioceses, and elderly investors has been sentenced to 20 years in federal prison. The sentencing marks the culmination of a nearly two-decade-long fraud operation that devastated hundreds of victims.
Decades-Long Fraud Operation Unraveled
Andrew Jacobus, 64, was taken into custody immediately following his sentencing hearing in Miami. Prosecutors detailed how Jacobus operated his elaborate scheme from 2004 through 2023 using various entities under his control, most notably Kronus Financial Corporation and Finser International Corporation, a registered investment advisory firm.
The scheme's mechanics followed classic Ponzi structure patterns. Jacobus presented himself as an experienced financial advisor, promising investors annual returns between 12% and 15% through investments in securities and businesses preparing to go public. In reality, prosecutors revealed he had no intention of investing most client funds as promised, instead using new investor money to pay earlier participants while diverting substantial amounts for personal use.
Sentencing Details and Victim Impact
Judge Jacqueline Becerra of Florida's Southern District delivered the sentence, imposing 20 years for wire fraud and 15 years for money laundering, with both terms to be served concurrently. The courtroom witnessed emotional scenes as more than 100 victims attended the hearing either in person or via Zoom. According to Miami Herald reports, approximately two dozen Venezuelan victims in the courtroom rose in applause as Jacobus was handcuffed and led away.
Bruce Lehr, one of Jacobus' defense attorneys from Lehr Levi & Mendez, acknowledged the inevitable outcome given the massive scale of losses. "I saw the inevitable writing on the wall based upon the amount of loss," Lehr stated, referencing federal sentencing guidelines that tie punishment severity directly to victim financial losses.
International Dimensions and Remorse Claims
The scheme had significant international dimensions, tracing back to Jacobus' establishment of a currency exchange in Venezuela in 2001. He later recruited customers from this business when launching his registered investment advisory firm in 2010, creating a transnational network of victims.
Despite the devastating impact on victims, Lehr claimed his client demonstrated unprecedented remorse during proceedings. "I have done many, many Ponzi scheme defenses and white-collar defenses and his allocution showed tremendous remorse and apologies, maybe the most I've seen in my career," the defense attorney remarked.
Ongoing Legal Proceedings and Restitution Questions
Significant uncertainty remains regarding victim compensation. Beyond Ponzi-style repayments some investors received using later participants' funds, it remains an open question whether victims will recover substantial portions of their losses. A parallel civil case brought by the Securities and Exchange Commission against Jacobus has been temporarily stayed pending resolution of the criminal matter.
Judge Becerra has scheduled a restitution hearing for May 26 to address compensation mechanisms for the numerous individuals and organizations defrauded through this elaborate scheme. Jacobus had previously pleaded guilty to wire fraud and money laundering charges in November, setting the stage for this week's sentencing.
The case highlights ongoing vulnerabilities in international investment networks and serves as a stark reminder of the devastating human impact behind complex financial crimes. With victims spanning multiple countries and demographics, the Jacobus scheme represents one of the more extensive Ponzi operations prosecuted in recent Florida history.
