Statement Summary
On May 28, 2025, the Securities and Exchange Commission (SEC) charged Kronus Financial Corporation, Finser International Corporation, and CEO Andrew H. Jacobus with defrauding clients by misappropriating over $17 million. The charges stem from allegations that Jacobus misled clients, primarily Venezuelan nationals, about their investments in securities from May 2015 to April 2024. Clients were falsely informed that their funds were invested in the Corfiser SIMI Fund, while in reality, Jacobus diverted money for personal expenses, including luxury items and Ponzi-like payments to other clients. The SEC’s complaint specifies violations of multiple securities acts and seeks permanent injunctions, disgorgement, and civil penalties. The case is filed in the U.S. District Court for the Southern District of Florida.
Original Statement
Kronus Financial Corporation, Finser International Corporation, Andrew H. Jacobus
U.S. SECURITIES AND EXCHANGE COMMISSION
Litigation Release No. 26317 / May 29, 2025
SEC Charges Investment Advisers and Their Principal with Defrauding Clients and Misappropriating Over $17 Million
On May 28, 2025, the Securities and Exchange Commission charged Kronus Financial Corporation and Finser International Corporation, along with their principal, Andrew H. Jacobus, with misappropriating over $17 million from 40 advisory clients, most of whom are Venezuelan nationals and include Catholic dioceses and elderly individuals.
According to the SEC’s complaint, beginning in at least May 2015 and continuing through April 2024, Jacobus (through Kronus and Finser) raised approximately $39.7 million from advisory clients who believed they were investing in securities, including the Corfiser SIMI Fund (later known as the Kronus High Yield Fund) and IPO stocks. As alleged, Jacobus, through Kronus and Finser, offered and sold limited partnership interests in the Corfiser SIMI Fund and misrepresented to clients that their money would be invested in that fund, which purportedly invested in IPOs.
According to the SEC’s 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. This included 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 over $17.3 million of 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 Jacobus (through Finser and Kronus) made approximately $7.8 million in Ponzi-like payments to certain advisory clients.
The SEC’s complaint, filed in the U.S. District Court for the Southern District of Florida, charges 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. The SEC seeks permanent injunctions, disgorgement with prejudgment interest, and civil penalties against the defendants. The SEC also seeks a conduct-based injunction against Jacobus.
The investigation was conducted by Cecilia Danger and Carol Der Garry and supervised by Jessica M. Weissman, Fernando Torres, and Glenn S. Gordon, all of the SEC’s Miami Regional Office. The litigation will be led by Christine Nestor under the supervision of Teresa Verges.
