JACKSONVILLE, Fla. – A Jacksonville man pleaded guilty to defrauding investors and fraudulently obtaining COVID-19 Paycheck Protection Program (PPP) loans, according to the United States Attorney’s Office for the Middle District of Florida.
Officials said Jared Dean Eakes, 34, faces up to 50 years in prison after pleading guilty to wire and bank fraud.
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According to the plea agreement, Eakes portrayed himself as a legitimate advisor and contacted investment advisors who were looking to sell their advisory businesses.
After negotiating to take over management of the advisors’ client assets, between approximately January 2019 and February 2020, Eakes converted approximately $2,737,462 of victim-investor funds to his own benefit by withdrawing the funds in cash, using investor funds to pay personal expenses, transferring investor funds to a Las Vegas-based casino company, and by engaging in unauthorized options trading in a personal brokerage account.
Moreover, between March 2020 and November 2021, Eakes fraudulently secured approximately $4,752,270 in emergency funds through four PPP loans.
Launched during the COVID-19 pandemic, the PPP allowed qualifying small businesses and other organizations to receive loans with a maturity of two years and an interest rate of one percent. Businesses were required to use PPP loan proceeds for payroll costs, interest on mortgages, rent, and utilities.
According to the plea agreement, Eakes caused the submission of four PPP loan applications—including applications for two of the entities involved in the scheme to defraud investors—which included false and fraudulent supporting documentation and statements regarding the entities’ employees and payroll.
Once he obtained the emergency loans, Eakes did not use the funds for qualifying expenses, officials said. Instead, he used the funds to engage in options trading or withdrew them in cash.
As part of the plea agreement, Eakes has agreed to forfeit $2,737,462.20, the proceeds of the scheme to defraud investors, and $4,752,270, the proceeds of the PPP loan fraud scheme. He also agreed to make full restitution to the victims of his offense conduct.
A sentencing date has not yet been set.
Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.