Jared Dean Eakes, a 34-year-old resident of Jacksonville, has pleaded guilty to charges of wire fraud and bank fraud, according to the United States Attorney Gregory W. Kehoe. Eakes faces up to 50 years in prison. A date for sentencing has not been scheduled.
According to court documents, Eakes presented himself as a legitimate advisor and contacted investment advisors interested in selling their advisory businesses. Between January 2019 and February 2020, he negotiated to take over management of client assets but instead diverted approximately $2.7 million from victim investors for his personal use. The plea agreement states that these funds were withdrawn in cash, spent on personal expenses, transferred to a casino company in Las Vegas, and used for unauthorized options trading.
Additionally, between March 2020 and November 2021, Eakes fraudulently obtained about $4.75 million through four Paycheck Protection Program (PPP) loans intended for emergency relief during the COVID-19 pandemic. The CARES Act was enacted in March 2020 to provide financial assistance during the pandemic through forgivable PPP loans for small businesses’ payroll and operating expenses.
Eakes submitted applications containing false documentation regarding employees and payroll for two entities involved in the investor fraud scheme. Instead of using the loan proceeds as required—for qualifying business expenses—he used them for options trading or withdrew them in cash.
As part of his plea agreement, Eakes will forfeit more than $2.7 million obtained from defrauding investors and $4.75 million from PPP loan fraud. He also agreed to pay full restitution to his victims.
The Federal Bureau of Investigation and the Federal Housing Finance Agency – Office of Inspector General investigated the case, which is being prosecuted by Assistant United States Attorney David B. Mesrobian.
“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,” stated officials.
