Federal prosecutors announced a plea agreement in the case of a former registered financial advisor in Florida accused of fraud, according to Wealth Management.
34-year-old Jared Dean Eakes of Jacksonville pleaded guilty to wire fraud and bank fraud for defrauding investors and obtaining fraudulent loans from the Payback Protection Program (PPP) instituted to provide financial aid during the COVID-19 pandemic.
According to the U.S. Attorney’s Office for the Middle District of Florida, 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,” the U.S. Attorney said.
Eakes was also accused of fraudulently securing about $4,752,270 in emergency funds through four PPP loans from March 2020 to November 2021. The loans were established for small businesses to use on payroll costs, mortgage interest, rent and utilities.
According to the plea agreement, Eakes caused four PPP loan applications, including those for two of the entities involved in the scheme to defraud investors, to be submitted with false and fraudulent supporting documentation and statements regarding the entities’ employees and payroll. After obtaining the loans he did not use them for qualifying expenses, authorities said, but instead used the funds to engage in options trading or withdrew them in case.
Eakes 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 fraud.
The SEC said Eakes briefly worked for Merrill Lynch before owning GraySail Advisers. In 2022, the SEC accused Eakes of misappropriating over $2.6 million from clients of GraySail.
Eakes faces a maximum penalty of 50 years in prison when he is sentenced.
The attorneys at Hyman Cotter PC have decades of experience dealing with securities fraud cases and have a deep understanding of how capital markets and financial service firms are intended to work to protect investors. If you think your financial professional or firm engaged in misconduct that caused you investment losses, contact Hyman Cotter PC at 312-291-4600 or through our online contact form for a no-cost evaluation of your matter.
