Preliminary Order of Forfeiture — United States v. Derek James Acree, No. 9:22-cr-80157 (S.D. Fla., Document 27)
Summary
This Preliminary Order of Forfeiture in Case 9:22-cr-80157-AHS (Document 27, entered on the docket 01/04/2023) grants the government's motion and enters a forfeiture money judgment of $869,682.83 against Derek James Acree. It recites that an Information charged Acree in Count 1 with conspiracy to commit wire fraud, and that the court accepted his guilty plea to Count 1 on October 11, 2022. The order states that Acree and co-conspirator 1 received approximately $1,612,555 in EIDL and PPP loan funds as a result of false claims in their loan applications, and that Acree retained approximately $869,682.83 for his personal use. The order states that it is final as to the defendant.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Cite this document
“Preliminary Order of Forfeiture — United States v. Derek James Acree, No. 9:22-cr-80157 (S.D. Fla., Document 27).”
Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/11-plea-agreement-as-to-derek-james-acree-148df1e893/
, SHA-256 98daab17985cc4be07268116c3149faf90042501d1052016dcfa796c08265f58.Full text
Case 9:22-cr-80157-AHS Document 27 Entered on FLSD Docket 01/04/2023 Page 1 of 7
*
UN ITED STA TES D ISTRICT COU RT
SOU TH ERN D ISTRICT OF FLORID A
CA SE N O . 22-80157-CR-SlN G H AL
UN ITED STATES OF AM EM CA
ks.
DEREK JAM ES A CREE,
D efendant.
/
PR ELIM IN A RY O R D ER O F FO R FEITU R E
THIS M ATTER isbeforetheCourtupon motion oftheUnited StatesofAperica(the
llunited States'')forçntry ofa Preliminary Order ofForfeiture (tûMotion'')againstDefendant
DerekJamesAcree(theS'Defendanf').TheCourthasconsideredtheM otion,isotherwiseadvised
in thepremises,and findsasfollows:
On September27,2022,theUnited Statesfiled an Infolnnation charging the Defendantin
Count1withcopspiracytocommitwirefraudinviolationof18U.S.C.j1349.lnformation,ECF
N o.1. The Inform ation also contained forfeiture allegations,w hich alleged thatupon çonviction
ofa violation of 18 U.S.C.j1349,the Defendantshallforfeithisproceeds,in the amountof
approxim ately $869,682.83. See id at6.
On October 11,2022,the Courtaccepted the Defendant's guilty plea to Count 1 ofthe
lnformation. SeeM inuteEntry,ECF No.10;PleaAgreement! 1,ECF No.11. Aspartofthe
guilty plea,theDefendantagreed to aforfeituremoneyjudgmentin theamountof$869,682.83.
.
Specifically, am ong other provisions in the Plea A greem ent, the Defendant agreed to the
following:
11. The defendant agrees,in an individualand any othercapacity,to
forfeitto theU nited States,voluntarily and im m ediately,any right,title,and interest
Case 9:22-cr-80157-AHS Document 27 Entered on FLSD Docket 01/04/2023 Page 2 of 7
f
to any property,realor personal,which constitutes oris derived from procerds
traceable to the com mission of the offense,in violation of 18 U .S.C.6 1349,
pursuantto 18 u.s. c.j 981(a)(l)(c),El2asincomorated by 28u.s.c.j 2-461(c),
and the provisions of 21 U.S.C.j 853. ln addition,the defendant agrees to
forfeiture ofsubstitute property pursuantto 21 U.S.C.j 853(p).The property
subjecttoforfeitureincludes,butisnotlimitedto:
a. a forfeimre money judgment in the sum of approximately
$869,682.83 in U.S.currency,which sum represents the value of .
any property thatconstitutesorisderived from proceedstrâceable
tothedefendant'scommission oftheoffensets)
PleaAgreement! 11.
lnsuppoM oftheguiltyplea,theDefendantexecutedà.FactualProffer,andtheCourtfound
thattherewasafactualbasisto supporttheDefendant'sconviction.SeeFactualProffer,ECF N o.
12.TheFactualProfferalsoprovided abasisfortheforfeitureofproperty. Seeid.
N ationalFinancialHoldings,Inc.,form erly N ational Financial Holdings LLC, was a
Delaware corpofation with aregistered addressin W ilm ington,Delaware and aprincipaladdress
in Palm Beach Gardens,Florida.DefendantwastheChiefOperatingOfficerofNationalFinancial
H oldings,lnc. N FH Florida LLC w as a D elaw are lim ited liability com pany with a registered
addressin W ilmington,Delaware. DefendantwastheM anaging M emberofNFH Florida LLC.
lThelnformationand PleaAgreementciteto 18U.S.C.j981(a)(1)(C)asthebasisforforfeittlre
ofproceeds.Section 981(a)(1)(C)doesprovideforforfeitureofproceedstraceableto. wire-fraud
offenses under 18 U.S.C.j1343 (and conspiracies).See 18 U.S.C.j981(a)(1)(C) (ti(1)The
following property is subjectto forfeiture to the United States:...(C)Any propel-ty,realor
personal,w hich constitutes oris derived from proceeds traceable to a violation of section ...any
offenseconstitmingCspecifiedunlawfulactivity'(asdefinedin section 1956(c)(7)ofthistitle)...,
oraconspiracytocommitsuch offense.''l;18U.S.C.j 1956(c)(7)(defining ûtspecifiedunlawful
activity''to include lûany actoractivity constituting an offenselisted in section 1961(1)ofthis
title');18U.S.C.j1961(1)(listinginteraliaûtsection 1343(relatingtowirefraudl'').lnthiscase,
becausethewirefraudaffectedafinancialinstitution,18U.S.C.j982(a)(2)(A)istheproperbasis
forDefendanttoforfeithisproceeds.See 18 U.S.C.j982(à)(2)(A)(ûG(2)The court,in imposing
sentenceon apersonconvictedofaviolationof,oraconspiracytoviolate (A)section ...1344
ofthistitle,affecting a snancialinstimtion,...shallorderthatthe person forfeitto the United
States any property constituting, or derived from , proceeds the person obtained directly or
indirectly,astheresultofsuchviolation.'').Undereithersection,Defendantmustforfeitproceeds.
2
Case 9:22-cr-80157-AHS Document 27 Entered on FLSD Docket 01/04/2023 Page 3 of 7
NationalFinancialHoldingsTeclmology LLC,wasa Delaware lim ited liability company with a
registered address in W ilmington,Delaware. Defendant was the Chief Operating Officer of
NationalFinancialHoldingsTechnology LLC.
During the period of M arch 2020 and continuing titrough in or around August 2070,
Defendantand co-conspirator 1 submitled and caused to be submitted severalloan applications
undertheEconomicInjuryDisasterLoan(EIDL)Program andthePaycheck ProtectionProgram
which were developed under the CARES Act. EIDL program was a U.S.Small Business
Administration (SBA)program that existed before the COVID-19 pandemic to provide 101-
interesttinancing to eligible sm allbusiness,renters,and hom eowners in regions affected by
declared disasters. TheCARES Actauthorized forgivableloansto qualified businessesand other
organizations forjob retention and cel-tain other expenses,through the Paycheck Protection
Program (PPP).SuchbusinesseswererequiredtousePPPloanproceedspnpayrollcosts,interest
on m ortgages,rent,and utilities.
O n M arch 31,2020,D efendantand co-conspirator 1 subm itted and caused to be subm itled
viawirean EIDL application on behalfofN ationalFinancialHoldings,lnc.,with alisted address
of4521PGA Blvd.,Suite 226,Palm Beach Gardens,FL,and soughtapproxim ately $.
509,900 in
EIDL funds. Theinitialapplication wassubmitted from an IP addresswhich originated in Palm
Beach Gardens. Defendantand co-conspirator1 executed theloan agreementas guarantors and
falsely represented the grossrevenues and num berofemployees ofNationalFinancialHolding
Inc.,during the lz-m onth period prlorto the dated ofthe COVID disaster. The application was
approved aqd funded by SBA .
Further,the approved EIDL funds were deposited into a BB&T (now Tnlist)account
ending in 5893,which washeld in the nnm e ofan entity otherthan NationalFinancialHolding,
3
Case 9:22-cr-80157-AHS Document 27 Entered on FLSD Docket 01/04/2023 Page 4 of 7
Inç. TheaccountholderfortheBB&T (now Truist)accountending in 5893wasNFH Florida
LLC,dbaFinovaFinancialLLC.AftertheEIDL proceedsweredeposited intotheBB&T (now
Truist) account ending in 5893,between April22,2020,and August 5,2020,funds were
distributed and transferred in nine separate wires totaling $396,000 to personaland unrelated
business accounis belonging to Defendantand co-conspirator 1. EIDL application submitled
through August8,2020,wereserviced through Virginia.BB&T's(now Truist)jerverslocqtedin
'
North Carolina.
On April3,2020,Defendantsubm itted and caused to be subm itted via wire a PPP loan
application on behalfofN ationalFipancialHolding,Inc.,with alistedaddressof4521PGA Blvd.,
Suite226,Palm Beach Gardens,FL. Thisapplication soughtapproxim ately $376,356.03 in PPP
fundsbased on purported average month payrollof$150,542.41 and l'epresented thatthe entity
émployed 20employees. Thecertificateofcompletion oftheapplication wassubmitted from an
IP address w hich originated in Palm Beach Gardens. D efendantexecuted the loan agreem entas
guarantor.Theapplication wasapproved and funded by FirstHomeBank.Am ongthedocum ents
providedbyDefendantin supportofthePPP loanwereBB&T (now Truist)bank statementsfor
accounte'
nding in 5368,which werefalsiied,in that,theprovided bank statem entslistedNational
FinancialHoldings,Inc,asthe accountholder,when in truth and in fact,the accountholderwas
NFH FloridaLLC dbaFinovaLLC.FuMher,thebarlkprovidedstatem entsreflectdifferentpayroll
lineamountsand totalssignificantly lessthan theintlatedpayrolllineamountsand totalsreflected
thebarlk statementsprovided by Defendant. BB&T's(now Truist)serversarelocated inNol'th
Carolina. FirstHom e Bank isHeadquartered in St.Petersburg,Florida,how ever,itsdepositsto
custom erFH B D DA are serviced through H onolulu,H aw aii. Further,the loan docum ents were
docusigned(withanIPAddressoriginatinginPalm BeachGardensandDocusignisheadquartered
4
Case 9:22-cr-80157-AHS Document 27 Entered on FLSD Docket 01/04/2023 Page 5 of 7
in San Francisco,California,w ith data centers outside ofFlorida.
,
The approved PPP fundsof$376,300 were deposited into a Silicon Valley Barlk account
ending in 0470 and held by NationalFinancialHoldingslnc.forwhich Defendantisasignatory.
'
.
AfterthePPP proceedswere deposited into SVB accountending in 0470,between M ay 1,2020
and Decem ber7,2020,funds,which included awiretransferof$195,000 ofEIDL proceedsfrom
BB&T accountending in 5893,funds were distributed and transferred in a number (
?fwires to
various unrelated entities'accounts,including wires in an aggregate am ount ofapproximately
$223,600 to co-conspirator 1's unrelated business account;approxim ately $54,795 an unrelated
business account, controlled by Defendant and co-conspirator 1; approxim ately $114,000 to
Defendant'sunrelatedbusinessaccounts'
,andtoSallesJewelersforthepurchaseofjewelry.
On April17,2020,Defendantsubmitted and caused to be submitted via wire aPPP loan
application on behalfofNFH Florida LLC,with a listed address of4521PGA Blvd.,Suite 226,
Palm Beach Gardens,FL.Thisapplication soughtapproxim ately $376,400 in PPP fundsbased on
purported average monthly income of$150,560 and claim of20 active em ployees.Am ong the
docum ents provided by D efendant in suppol't of the application w ere a borrow er's w orksheet
which reported atotalpayrollcostof$1,806,508 forthe lz-m onth period priorto thedisasterand
anlRSForm 940(ScheduleR)purportedlypreparedbylnsperityPEO Services,LP forTaxYear
2019.The application wasapproved and funded by TruistBank,formrrly BB& T,whoseservers
are located in North Carolina.Docum entation from Insperity revealed thatthey did notprepare
payrollforTY 2018 orTY 2019;however,Insperity waspàid $80,983 during the period ofApril
2020-June 2020.
Afterthe PPP funds were deposited,approxim ately $374,000 was m oved through nine
separatewiresand 21bank accounttransfers.Eightofthewiresweretraced to um'elated business
5
Case 9:22-cr-80157-AHS Document 27 Entered on FLSD Docket 01/04/2023 Page 6 of 7
accountsin which Defendantand theco-conspirator 1wereauthorized signatories.
On.April20,2020,Defendantsubmitted and caused to be submitted via wirea PPP loan
application on behalfofNationalFinancialHoldingsTechnology LLC,with a listed address of
1400 Centrepark Blvd.,Suite 800,W estPalm Beach,FL.Thisapplication soughtapproximately
$349,955 in PPP funds based on a purported m onthly payrollof$139,982 and listed 18 active
employees. Defendantsubm itted the PPP application as GeneralCounsel. The application waj
approved and funded by Flagler Bank.Among the documents provided in.supporto? the
application wasaPPP checklistsigned by Defendant,asOffcer,attestingtothecom parfy'spayroll
paymentforTY 2019 as $257,374.21and 1RS Forms 940 and 941 (ScheduleR)purportedly
prepared by Insperity.Insperityfoundno record forForm s940or941hadeverbeen prepared for
NationalFinancialHoldingsTechnology LLC.Orany oftherelated entities.
On April24,2020,a FlaglerBm'
kk accountwasopened with $100 and the bank account
agreem ents listed Defendantand co-conspirator 1 as signatories. The accountw asfunded on July
27,2020,however,theproceedswerepulledback on July 29,2020.FlaglerBank isHeadquartered
,
in W estPalm Beach,FL.A11PPP applicationssubm itted through August8,2020,werereceived
through SBA E-Tran with serverslocated in Virginia.
Asindicated above,Defendantand co-conspirator 1received approxim ately $1,612,555 in
EIDL and PPP loan fundsas a resultofthe false claim sand representations in theirEID L and PPP
loan applications. Ofthe EIDL and PPP proceeds received,Defendantretained approxim ately
$869,682.83 forhispersonaluse,to includeAm erican Expresscreditcardpayments,U SSA credit
card paym ents for m aintenance of an Audi,$11,000 paym ent to Trump National.Golf Club,
m onthly paym ents of child schooltuition,m arine services for a vessel, Salles Jewelers in the
amountof$67,900,XO Globalin the amountof$54,795 forprivatejetservices,and $46,000
6
Case 9:22-cr-80157-AHS Document 27 Entered on FLSD Docket 01/04/2023 Page 7 of 7
dowp paym entforahom elocated at13058Flamingo Terr.,Palm Beach Gardens,FL.
Based ön therecord in thisc4se,the totalvalue oftheproceedstraceableto the offenseof
conviction is$869,682.83.
Accordingly,basedontheforegoing,theevidenceintherecord,andforgood causeshown, ' .
.
the M otion is G R ANTED ,and itishereby O R DE RED that:
Pursuantto 18 U.S.C.j982(a)(2)(A) and Rule 32.2 of the FederalRules of
Criminal'procedure,aforfeituremoneyjudgmentintheamountof$869,682.83isherebyentered
againsttheDefendant.
The United Statesisauthorized to conductany discovery thatmightbe necessal'y
.
to identify,locate,ordispose offorfeited propely,and to resolveany third-party petition,pursuant
toRule32.2(b)(3),(c)(1)(B)oftheFederalRulesofCriminalProcedureand21U.S.C.j853(m).
3. PursuanttoRule32.2(b)(4)oftheFederalRules.ofCriminalProcedurexthisOrder
isfinalastotheDefendant.
4. TheCourtshallretainjurisdiction inthismatterforthepurpose ofenforcing this
Order,andpursuanttoRule32.2(e)(1)oftheFederalRulesofCriminalProcedure,shallamend
this Order, or enter other orders as necessary, to forfeit additional specisc property when
identified.
D O N E A ND O R DER ED in FortLauderdale,Florida,this day ofJanuary 2023.
(
R AA G S AL v
UN ITED STA TES IS RICT JU D GE
File and source
- File
- 11-plea-agreement-as-to-derek-james-acree.pdf
- Size
- 400,060 bytes
- SHA-256
- 98daab17985cc4be07268116c3149faf90042501d1052016dcfa796c08265f58
- Original
- No public link identified.