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Former Florida Financial Advisor Charged with $2.7 Million Fraud Scheme

Posted on July 23rd, 2024 at 12:10 PM
Former Florida Financial Advisor Charged with $2.7 Million Fraud Scheme

From the desk of Jim Eccleston at Eccleston Law

According to ThinkAdvisor, federal prosecutors have charged former Florida financial advisor Jared Dean Eakes with wire fraud, alleging he scammed clients out of over $2.7 million across multiple states, including Alabama, Arkansas, Florida, Missouri, and elsewhere.

From January 2019 through February 2020, Eakes misrepresented himself as a registered investment advisor managing millions in client funds. He used an online marketplace to acquire other advisors' businesses, according to an indictment filed in the U.S. District Court for the Middle District of Florida. The criminal charges follow civil charges filed by the Securities and Exchange Commission (SEC) two years ago related to the same alleged fraud scheme.

Prosecutors allege that Eakes transferred these funds into accounts he controlled. He misled clients into believing their funds were being invested as per their wishes, while in reality, he used the money for personal gain. This included embezzling funds, transferring money to his personal brokerage account, engaging in unauthorized options trading, and funding personal expenses, such as paying previous investment advisors and transferring funds to a Las Vegas casino.

As part of his scheme, Eakes created several corporate entities purportedly involved in investment management or consulting, including variations on the name GraySail. The government seeks over $2.7 million in forfeited property, representing the proceeds Eakes obtained from the alleged fraud.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, sec

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