Church Funds Stolen in Outrageous Ponzi Scheme

Person holding credit card near laptop displaying Fraud.

A Fort Lauderdale financial advisor just pleaded guilty to orchestrating a $94 million Ponzi scheme that preyed on vulnerable Venezuelan nationals and Catholic Church organizations for nearly two decades—exposing massive regulatory failures that allowed an SEC-registered fraudster to operate virtually undetected.

Story Snapshot

Andrew Hamilton Jacobus, 64, pleaded guilty on November 14, 2025, to wire fraud and money laundering charges in a $94 million international investment fraud scheme spanning 2004-2023
The scheme specifically targeted affluent Venezuelan nationals and a nonprofit supporting Venezuelan Catholic priests’ retirement and healthcare, stealing approximately $3.2 million from Church organizations alone
Jacobus maintained SEC registration with Finser International Corporation from 2010-2021 despite conducting fraudulent operations, demonstrating critical gaps in regulatory oversight
The defendant faces up to 20 years in federal prison per count and is awaiting sentencing after confessing to systematically misappropriating client funds and fabricating investment portfolios
The case exposes how fraudsters exploit diaspora populations’ vulnerability, limited familiarity with U.S. financial systems, and desire to preserve wealth outside economically unstable home countries

A Registered Advisor’s Two-Decade Betrayal of Trust

Andrew Hamilton Jacobus operated his fraudulent scheme with calculated precision, leveraging his position as an SEC-registered financial advisor to build credibility with Venezuelan investors seeking secure U.S. investment opportunities. Beginning in 2004, Jacobus established fraudulent entities including Kronus Financial Corporation and Finser International Corporation, positioning himself as a gateway to American wealth preservation. His operation of a currency exchange business in Venezuela provided additional legitimacy within the diaspora community, allowing him to solicit investments under false pretenses while promising exceptional returns on securities and limited partnership interests in IPO funds.

The sophistication of Jacobus’s deception lay in his exploitation of regulatory legitimacy. Despite maintaining SEC registration from 2010 through 2021, federal investigators later determined he was systematically misappropriating client funds. Jacobus instructed victims to deposit money into U.S. bank and brokerage accounts under his direct control, then fabricated detailed account statements and investment documentation to create the illusion of legitimate portfolio growth. When questioned by regulators in 2020, the SEC censured Jacobus for charging “exorbitant” performance fees—a warning sign that should have triggered deeper investigation but instead allowed the fraud to continue unabated for three more years.

Religious Organizations and Vulnerable Populations Targeted

The predatory nature of Jacobus’s scheme becomes apparent when examining his victims. The fraud specifically targeted a nonprofit organization dedicated to supporting Venezuelan Catholic priests’ retirement and healthcare, stealing approximately $3.2 million from Church clergy and dioceses. Beyond institutional victims, Jacobus systematically defrauded affluent Venezuelan nationals including a renowned sculptor, a plastic surgeon, and a wealthy businessman operating a crane company. These individuals shared common characteristics: they possessed capital to invest, sought to preserve wealth outside Venezuela’s economically deteriorating environment, and trusted Jacobus based on his apparent regulatory standing and community connections.

Venezuela’s severe economic crisis, currency devaluation, and capital controls created desperation among wealthy citizens seeking investment opportunities abroad. Jacobus exploited this vulnerability ruthlessly. As new investor recruitment slowed by 2021, he abandoned the pretense of legitimate returns, simply ceasing payments to some clients while fabricating explanations involving “liquidity issues and regulatory restrictions.” The scheme persisted until 2023 when affluent Venezuelan victims filed civil lawsuits, finally bringing the fraud to public attention and triggering the federal investigation that led to Jacobus’s July 2025 arrest.

Regulatory Failure and Systemic Vulnerability

The Jacobus case exposes fundamental weaknesses in SEC oversight mechanisms designed to protect investors. An agency-registered financial advisor operated an elaborate Ponzi scheme for nearly two decades, victimizing international populations while maintaining apparent regulatory compliance. The 2020 SEC censure for excessive performance fees represented a regulatory action that, in retrospect, should have prompted comprehensive investigation into Jacobus’s overall operations. Instead, isolated regulatory violations masked the larger fraudulent enterprise. This pattern reflects broader challenges in detecting and preventing fraud by SEC-registered advisors despite existing oversight mechanisms.

The case demonstrates how fraudsters exploit asymmetrical information and trust relationships. Jacobus possessed apparent regulatory legitimacy as a registered advisor, operated a legitimate-appearing currency exchange business, and positioned himself as a U.S.-based professional offering access to secure American investment opportunities. His victims—diaspora populations with limited familiarity with U.S. financial regulatory systems—lacked the tools to verify his claims or detect the fabricated documentation. This vulnerability extends beyond Venezuelan nationals to immigrant and diaspora communities broadly, creating elevated fraud risk for populations seeking to preserve wealth outside economically unstable home countries.

On November 14, 2025, Jacobus pleaded guilty to wire fraud and money laundering charges, confessing to systematically defrauding investors of over $94 million across nearly two decades. Federal prosecutors confirmed maximum penalties of 20 years in federal prison per count, with sentencing pending before a federal district court judge who will consider U.S. Sentencing Guidelines and statutory factors. Asset forfeiture proceedings are underway to recover stolen funds, though the extent and timeline for victim restitution remain uncertain given the complexity of tracing assets across multiple accounts and international jurisdictions.