Daniel Jacobs, 60, faces up to five years in prison and a maximum fine of $250,000 when sentenced March 24 on a charge of conspiracy to obstruct justice, the U.S. attorney's office said.

Jacobs, a former Burbank, Calif. resident who now lives in Michigan, has agreed to pay $1 million in restitution, federal prosecutors said.

Jacobs acknowledged in a plea agreement that he and others provided the SEC with false documents about NAA Financial, a bogus Swiss brokerage firm in which Slatkin claimed he was holding his investors' funds.

Instead, Slatkin used more than $593 million collected from 800 investors to pay older investors while claiming he was delivering above average returns.

Slatkin, who also served as financial adviser to celebrities, business executives and socialites, pleaded guilty in April to mail fraud, wire fraud, money laundering and conspiracy to obstruct justice. He faces up to 105 years in prison when sentenced Feb. 24.

AP-ES-11-21-02 2213EST