↓ Skip to Main Content
SEC ACTIONS
  • Home
  • Articles
  • Archives
  • Media
  • Related Links
  • About
  • Subscribe to our Mailinglist
Home › SECActions ›

Adviser Targets Clients

Adviser Targets Clients

T. GormanPosted on May 29, 2025 Posted in SECActions

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).

Print 🖨 PDF 📄
‹

This Week In Securities Litigation (Week of May 26, 2025)

This Week In Securities Litigation (Week of June 2, 2025)

›

Search SEC Actions

Prepared:

Thomas O. Gorman

DC Attorney specializing in securities
and other agency litigation

Former SEC Senior Counsel, Enforcement
and Special Trial Counsel, GC Office
    © 2025 SEC ACTIONS
    • Subscribe to our Mailinglist
    Manage Cookie Consent
    To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    Manage options Manage services Manage {vendor_count} vendors Read more about these purposes
    View preferences
    {title} {title} {title}