Slatkin Associate Agrees to Guilty Plea

Instead, Slatkin was using money collected from new investors to pay older investors while claiming he was delivering above-average returns.

Jacobs has admitted that during the investigation, he set up phony European phone numbers for NAA Financial, bought European-style letterhead stationery for Slatkin and altered a fax machine at his home so recipients would think faxes were coming from a European phone number.

Jacobs also fabricated bank records and correspondence to convince the SEC that Slatkin had transferred more than $400 million into the phony Swiss bank account.

In return, Slatkin paid Jacobs $1 million and some gold coins, the SEC said.

The plea agreement could bring a sentence of about one year in prison and a maximum fine of $250,000. Jacobs also may be required to pay back the $1 million in fees he received.

Jacobs has agreed to cooperate with an ongoing investigation, federal prosecutors said.