Andrew H. Jacobus, an investment adviser, was arrested for running a Ponzi scheme, defrauding Venezuelan investors and two Catholic dioceses out of $94 million. He induced Venezuelans to invest in his firms, promising 12% to 15% yearly returns on their investments. Ultimately, Jacobus used new investments to pay old ones to hide the scheme's true nature. The SEC has also filed a civil lawsuit against him. Investors sought safety for their funds amidst the economic collapse in Venezuela, which led to multiple lawsuits against Jacobus for fraud and theft.
Jacobus induced dozens of Venezuelans living in South Florida and abroad to sink $94 million into investments that he stole from their accounts over the past two decades.
As a result, Jacobus had to use new investor funds to pay existing investors their promised returns to conceal the Ponzi scheme and the actual performance of the investments with the companies.
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