Adviser Targets Clients
While the Commission continues to dismiss cases with prejudice without specifying the reasons, the agency is also filing new and settled cases in traditional areas. One of those areas is targeted offering frauds. Those typically focus on a specific group selected by those operating the scheme. A recent case in this area is SEC v. Kronus Financial Corporation, Civil Action No. 1:25-cv-22411 (S.D.Fla. Filed May 28, 2025).
Named as defendants in this action are: The firm, Kronus; Finser International Corporation; and Andrew H. Jacobus. Kronus was based in Miami, Florida. It was dissolved in September 2024. Finser was registered with the Commission as an investment adviser from June 2010 through January 2021. Defendant Jacobus was the owner of Finser. It filed a Form ADV-W to withdraw its registration. In September 2020 Defendants Finser and Jacobs settled administrative proceedings with the Commission. Those proceedings were based on charging fees that were contrary to the disclosures made by the firm to the fund managed by Mr. Finser. The action was settled. See In the Matter of Finser International Corporation, Release No. 5593 (Sept. 24, 2020).
Here the charges focus on the period May 2015 through April 2024. Prior to that period Mr. Jacobus established and became the sole owner of a currency exchange provider in Venezuela. In 2010 he established Finser as an SEC registered investment adviser. The firm engaged in currency exchange transactions with its clients. Those clients paid a 1% management fee. Later Mr. Jacobus paid himself a salary.
During the period May 2015 and April 2024 clients deposited their funds in accord with instructions received from Mr. Jacobus – typically to deposit their funds with one of the firms he controlled. The clients were largely Venezuelan nationals that included Catholic dioceses and elderly individuals. Millions of dollars was deposited into various brokerage accounts he controlled. From the account about $17.8 million was taken and used to make Ponzi-like payments to certain clients and for personal activities. The funds came from about 40 advisory clients. The complaint alleges violations of Securities Act Section 17(a), Exchange Act Section 10(b) and Rule 10b-5 and Advisers Act Sections 206(1) and 206(2). See Lit. Rel. No. 26317 (May 29, 2025).
Adviser Targets Clients
While the Commission continues to dismiss cases with prejudice without specifying the reasons, the agency is also filing new and settled cases in traditional areas. One of those areas is targeted offering frauds. Those typically focus on a specific group selected by those operating the scheme. A recent case in this area is SEC v. Kronus Financial Corporation, Civil Action No. 1:25-cv-22411 (S.D.Fla. Filed May 28, 2025).
Named as defendants in this action are: The firm, Kronus; Finser International Corporation; and Andrew H. Jacobus. Kronus was based in Miami, Florida. It was dissolved in September 2024. Finser was registered with the Commission as an investment adviser from June 2010 through January 2021. Defendant Jacobus was the owner of Finser. It filed a Form ADV-W to withdraw its registration. In September 2020 Defendants Finser and Jacobs settled administrative proceedings with the Commission. Those proceedings were based on charging fees that were contrary to the disclosures made by the firm to the fund managed by Mr. Finser. The action was settled. See In the Matter of Finser International Corporation, Release No. 5593 (Sept. 24, 2020).
Here the charges focus on the period May 2015 through April 2024. Prior to that period Mr. Jacobus established and became the sole owner of a currency exchange provider in Venezuela. In 2010 he established Finser as an SEC registered investment adviser. The firm engaged in currency exchange transactions with its clients. Those clients paid a 1% management fee. Later Mr. Jacobus paid himself a salary.
During the period May 2015 and April 2024 clients deposited their funds in accord with instructions received from Mr. Jacobus – typically to deposit their funds with one of the firms he controlled. The clients were largely Venezuelan nationals that included Catholic dioceses and elderly individuals. Millions of dollars was deposited into various brokerage accounts he controlled. From the account about $17.8 million was taken and used to make Ponzi-like payments to certain clients and for personal activities. The funds came from about 40 advisory clients. The complaint alleges violations of Securities Act Section 17(a), Exchange Act Section 10(b) and Rule 10b-5 and Advisers Act Sections 206(1) and 206(2). See Lit. Rel. No. 26317 (May 29, 2025).