Kronus Financial Corporation, Finser International Corporation, Andrew H. Jacobus

Document Overview The U.S. Securities and Exchange Commission (SEC) charged Kronus Financial Corporation, Finser International Corporation, and their principal Andrew H. Jacobus with defrauding clients and misappropriating over $17 million. The complaint alleges that the defendants misled clients about investment returns, access to funds, and account balances, while misusing client funds for personal expenses. Key Charges and Impact The SEC charged the defendants with violating securities laws, including Section 17(a) of the Securities Act and Sections 206(1) and (2) of the Investment Advisers Act. The charges involve a scheme to defraud clients and misappropriate millions of dollars from advisory clients, mostly Venezuelan nationals and elderly individuals. Compliance Considerations The SEC's complaint highlights the importance of complying with securities laws and regulations, particularly for investment advisers and their principals. It underscores the need for accurate disclosure, proper management of client funds, and adherence to applicable laws and rules to prevent similar schemes from occurring in the future.