Federal prosecutors have charged a former Florida financial advisor with wire fraud, alleging he scammed clients in at least four states out of over $2.7 million after gaining access to them by acquiring other advisors' books of businesses under false pretenses.
Jared Dean Eakes, from at least January 2019 through February 2020, falsely represented himself as a registered investment advisor managing millions in client funds and seeking, through an online marketplace, to acquire other advisors' business, according to an indictment filed last week in U.S. District Court for the Middle District of Florida.
An FBI special agent arrested Eakes in Jacksonville on May 20, and he was detained pending trial. Last week he pleaded not guilty to all four fraud counts.
The criminal charges come about two years after the Securities and Exchange Commission filed civil charges against Eakes related to the alleged fraud scheme. The Florida Times-Union reported this week that the charges also come nearly a year after the SEC told the court that Eakes, 32, was "actively concealing his whereabouts."
After assuming control of client assets from two advisors, Eakes converted their funds to accounts he controlled, prosecutors allege. The victims, including 17 cited by initials, lived in Alabama, Arkansas, Florida, Missouri and elsewhere, according to the indictment.
Eakes misled clients into thinking their funds were being invested according to their wishes, when in reality he converted their money to his own use, prosecutors allege.
Among other activities, he allegedly embezzled and transferred client money to his personal brokerage account and engaged in unauthorized options trading; he also used victim funds to pay their previous investment advisors and to fund his personal expenses, and transferred funds to a Las Vegas casino company, prosecutors allege.
As part of his alleged scheme, Eakes created several corporate entities purportedly engaged in investment management or consulting activities, including several variations on the name GraySail, the indictment says.
The government seeks over $2.7 million in forfeited property, which represents proceeds he personally obtained from the alleged scheme.
Eakes, formerly a registered investment advisor and broker, worked as a broker for Merrill Lynch for about a year from late 2016 to early 2018, according to the Financial Industry Regulatory Authority's BrokerCheck database.
The disciplinary actions against him don't appear connected to his Merrill employment; a spokesman for Merrill parent Bank of America had no immediate comment Thursday.
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