Took me a while to get back to this. I did not give you all the requirements, and unfortunately this will not work. To chroot a user or group, root needs to exclusively own directories under the directory you are trying to jail them to. I need others to be able to access the directory. If I add a group to the directory structure and give it 0775 permission, I get a "Write failed: Broken pipe" error when trying to sftp in.
Now, jailing the user to their home directory, and not some other directory, showed some success. Problem with this approach is I am trying to jail them to specific subdirectory in my website directory root. It is "possible" to move part of my website to the jailed user's home, and then mount their home back into my website file structure. This is not ideal, however, since I am using Git for version control on my website files.
Any other thoughts? Thank you