Jared Dean Eakes, a 34-year-old resident of Jacksonville, has pleaded guilty to charges of wire fraud and bank fraud. The announcement was made by United States Attorney Gregory W. Kehoe. Eakes could face up to 50 years in prison, though a sentencing date has not yet been scheduled.
According to court documents, Eakes presented himself as a legitimate advisor and approached investment advisors interested in selling their businesses. From January 2019 through February 2020, he assumed control over client assets and misappropriated approximately $2.7 million for personal use. The funds were used for cash withdrawals, personal expenses, transfers to a Las Vegas casino company, and unauthorized options trading.
Between March 2020 and November 2021, Eakes also obtained about $4.75 million in Paycheck Protection Program (PPP) loans through fraudulent means. The PPP was part of the CARES Act enacted in March 2020 to provide financial relief during the COVID-19 pandemic by offering forgivable loans to small businesses for payroll and other expenses. In April 2020, Congress allocated additional funding for this program.
Businesses that received PPP loans were required to spend the money on payroll costs or specific operating expenses such as mortgage interest, rent, or utilities. Loan forgiveness depended on meeting these requirements within a set period.
Eakes submitted four PPP loan applications containing false information about employees and payroll for two entities involved in his investor fraud scheme. Instead of using the funds as intended by the program guidelines, he used them for options trading or withdrew them as cash.
As part of his plea agreement, Eakes will forfeit $2,737,462 from his investor fraud scheme and $4,752,270 from the PPP loan fraud scheme. He has also agreed to pay full restitution to victims.
The investigation was conducted by the Federal Bureau of Investigation and the Federal Housing Finance Agency – Office of Inspector General. Assistant United States Attorney David B. Mesrobian is prosecuting the case.
Individuals with information about attempted COVID-19-related fraud are encouraged to contact the Department of Justice’s National Center for Disaster Fraud Hotline at 866-720-5721 or submit a report online at https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.
