What type of penalty? Retirement distribution? Late filing or late payment? There is no provision such as this for retirement, but you can always call the IRS and plead your case for the other ones.

It was money I pulled from an IRA and it was supposed to be reinvested into an IRA but he is in jail waiting trial. Found out it was a Ponzy type scam.

There are waivers available for missing the 60 day rollover deadline, but it would require you to deposit the amount of the withdrawal back into the IRA or another IRA.  You would have to submit a self-certification letter at the time of the rollover to the IRA custodian.  For more information see:  http://news.cchgroup.com/2019/06/27/rollover-60-day-waivers-self-certification/news/federal-tax-head...

The IRS also allows you to write off the loss from an investment in a ponzi scheme.  For more information see: Help for Victims of Ponzi Investment Schemes