Theft of $1.6M in CARES Act money sends South Florida attorney to prison for three-plus years
FORT LAUDERDALE ― A Palm Beach Gardens attorney who pleaded guilty in October to stealing $1.6 million in government-backed loans has received a sentence of more than three years in federal prison.
U.S. Judge Raag Singhal sentenced Derek James Acree on Sept. 4 to 41 months in prison and ordered him to pay $1.26 million in restitution and $1.6 million in asset forfeitures.
Acree, 47, pleaded guilty in October to conspiracy to commit wire fraud. Federal prosecutors alleged that from March through August 2020, Acree submitted fraudulent applications seeking more than $1.6 million in Paycheck Protection Loans and Economic Injury Disaster Loans that were intended to help small businesses survive the COVID-19 pandemic.
The Small Business Administration guaranteed the loans under the Coronavirus Aid, Relief and Economic Security, or CARES, Act.
Original story:Charge against Palm Beach Gardens lawyer alleges he stole $1.6 million in COVID relief loans
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In recent months, the South Florida U.S. Attorney’s Office has charged more than 20 people with defrauding COVID-19 loan programs out of a total of more than $150 million.
80 cases filed in South Florida, with $23.5M recovered
As of October, it had filed 80 cases and recovered nearly $23.5 million in stolen funds since the $2.2 trillion CARES Act economic-stimulus bill was passed in March 2020, it said. Federal officials last fall tapped the office to lead one of the nation’s three COVID-19 Fraud Strike Force Teams.
Prosecutors said Acree submitted applications for loans that didn't have to be repaid if they were used to keep businesses afloat. According to court records, he and an unnamed co-conspirator submitted the applications for Delaware-based companies that he owned in whole or in part. The applications misrepresented the companies' number of employees, payroll expenses and gross revenues.
After obtaining the fraudulent loan proceeds, Acree transferred some of the money to others and used a portion of it to make a down payment on a home, as well as for jewelry, travel, repairs on his home and a boat.
In 2021, Acree agreed to return $12.8 million and pay a $125,000 penalty after the U.S. Securities and Exchange Commission accused him, a business partner and their Cayman Islands-based company of selling unregistered securities.
When the SEC charged the company, Acree and one-time West Palm Beach-area resident Gregory Keough with selling $30 million in unregistered securities, regulators said they misled investors.
Without admitting wrongdoing, Acree and Keough agreed to return investors' money and pay the penalty.
Julius Whigham II is a criminal justice and public safety reporter for The Palm Beach Post. You can reach him at jwhigham@pbpost.com and follow him on Twitter at @JuliusWhigham. Help support our work: Subscribe today.
This article originally appeared on Palm Beach Post: Paycheck Protection Program theft of $1.6M sends lawyer to prison
