Stipulated Factual Basis — U.S. v. Derek James Acree (S.D. Fla.)
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A Stipulated Factual Basis in United States v. Derek James Acree, Case 9:22-cr-80157-AHS, in the U.S. District Court for the Southern District of Florida, entered on the docket 10/11/2022 as Document 12, supporting a guilty plea to count 1 of the Information for conspiracy to commit wire fraud under Title 18, United States Code, Section 1349. The defendant acknowledges the government could prove that the defendant and co-conspirator 1 submitted an EIDL application seeking approximately $509,900 and PPP applications seeking approximately $376,356.03, $376,400 and $349,955, with falsified bank statements and payroll forms. It states they received approximately $1,612,555 in EIDL and PPP funds and that the defendant retained approximately $869,682.83 for personal use, including $67,900 at Salles Jewelers and $54,795 for private jet services.
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“Stipulated Factual Basis — U.S. v. Derek James Acree (S.D. Fla.).”
Original at ecf.flsd.uscourts.gov. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/court-filing-united-states-v-derek-james-acree-dkt-12-s-d-fla-b0cf602b02/
, SHA-256 06329fef86ccc01c5740bf9b5486442b54bf920a0fdba01263f44db0dc87e69b.Full text
Case 9:22-cr-80157-AHS Document 12 Entered on FLSD Docket 10/11/2022 Page 1 of 7
UM TED STATES DISTRICT COURT
SOUTHERN DISTRICT OF FLOW DA
càsE NO.22-80157-A115
UNITED STATES O F A M ERICA
VS.
DER EK JAM ES A CREE,
D efèndant. '
/
STIPU LA TED FA CTUA L BA SIS
The U nited States A ttorney's Oftice for the Southern D istrict of Florida and the
D efendant,DEREK JA M ES A CREE,stipulate to the folloF ing factsp.and stipulate that such
facts,in accordancewith Rule 11(b)(3)oftheFederalRulesofCriminalProcedure,provide a
'
j
sut-
ficientfactualbasisforthe pleaf)fguilty to couni 1 ofthe Infbrmation which chargethe
defendantw ith conspiracy to com m itw ire fraud,-in Title 18,United States Code,Section 1349.
1,DEREK JAM ES A CREE,hereby acknowledges thatthe Governm entcould prove the
follow ing factsbeyond a reasonable dotlbt:
'
.
N ationalFinancialHoldings,h c.,formerly N ationalFinancialH oldingsLLC,w as
aD elaw arecorporation with aregistered addressin W ilm ington,D elaware and aprincipaladdress
inPalm Beach Gardens,Florida.DEREK JAMESACRE/ wastheChiefOperating Officerof
N ationalFinancialH oldings,INC.
2. NFH Florida LLC w as a Delaw are lim ited liability com pany with a registered
addressin W ilm ington,D elaw are. DEREK JA M ES A CREE wastheM anaging M em berofN FH
Florida LLC.
Case 9:22-cr-80157-AHS Document 12 Entered on FLSD Docket 10/11/2022 Page 2 of 7
N ationalFinancialH oldings Technology LLC,was a Delaw are lim ited liability
company with a registered addressin W ilm ington,Delaw are. DEREK JAM ES ACREE w as the
ChiefOperating OfficerofN ationalFinancialH oldingsTechnology LLC .
During theperiod ofM arch 2020 and continuing through in orarotm dA ugust2020,
DEREK JA M ES A CREE and a co-conspirator 1 subm itted and catlsed to be subm itted several
loan applicationstmdertheEconomiclnjtuy DisasterLoan (EIDL)Program and thePaycheck
Protection Prograin were developed under the CARES Act. EIDL program wasa U.S.Small
BusinessAdministration(SBA)program thatexistedbeforetheCOV1D-19pandemictoprovide
low-interestfinahcing to eligible sm allbusiness,renters,and hom eowners in regionsaffected by
declared disasters. The CARES A ctauthorized forgivable loansto qualified businessesand other
organizations forjob retention and cel-tain other expenses,tllrough the Paycheck Protection
Program (PPP).SuchbusinesseswererequiredtousePPP loanproceedsonpayrollcosts,interest .
on m prtgages,rent,and utilities.
On M arch 31,2020,DEREK JAM ES A CREE and a co-conspirator 1 subm itted
zr
and caused to besubm itted viawirean EIDL application on behalfofN ationalFinancialHoldings,
lnc.,with a listed addressof4521 PGA Blvd.,Suite 226,Palm Beach G ardens,FL,énd sought
approximately $509,900inEIDL ftmds.Theinitialapplicationwassuhmittedfrom anIP address
which originated in Palm Beach G ardens. DEREK JAM ES A CREE and the co-conspirator 1
2
t
executed the loan agreem entasguarantors and falsely represented the g'
rossrevenuesand num ber
ofem ployeesofN ationalFinancialH olding Inc.,dm ing the lz-m onth periodpriorto the dated of
the COV ID disaster.The application w asapproved and ftm ded by SBA . The governm entw ould .
offer docum entary and testim onialevidence,to include w itness statem entsand the entity's ballk
account,proving thatthe stated grossrevenue and thenum berofem ployees were false.
Case 9:22-cr-80157-AHS Document 12 Entered on FLSD Docket 10/11/2022 Page 3 of 7
Further,the approved EIDL fundswere deposited into a BB&T (now Tnlist)
accotlntending in 5893,w hich w as held in the nam e ofan entity other than N ationalFinancial
Holding,lnc.TheaccotmtholderfortheBB&T (now Trtzist)accotmtendingin5893wasNFH
FloridaLLC,dba FinovaFinancialLLC. AftertheEIDL proceedsw eredeposited into theBB& T
(now Tnlist)accotmtending in 5893,between April22,2020 andAugust5,2020,fundswere
distributed and transferred in nine separate wires totaling $396,000 to personaland tmrelated
business accotlnts belonging to DEREK JAM ES A CREE and the co-conspirator EID L
application submittedthrough A1151st8,2020 weresez-viced through Virginia. BB&T's(now
Tntist)serversarelocatedinNorthCarolina.
On April3,2020,DEREK JAM ES ACREE subm itted and caused to be subm itted
viaw irea PPP loan application on behalfofN ationalFinancialHolding,Inc.,with a listed address
of4521PGA Blvd.,Suije226,Palm Beach Gardens,FL. Thisapplication soughtapproximately
$376,356.03 in PPP funds based on purported average m onth payroll pf $150,542.41 and
represented that the entity employed 20 employees. The certificate of com pletion of the
application w asstlbm itted fzom an P addresswhich originated in Palm Beach G ardens. DEREK
JA M ES A CREE exectlted the loan agreem entas guarantor. The application w as approved and
funded by FirstHom e Bank. Am ong the docum ents provided by DEREK JAM ES ACREE in
supportofthePPP loan FereBB&T (now Tnlist)bar.
tk statementsforaccotmtending in 5368,
which were falsified,in that,theprovided bank statem entslistedN ationalFinancialH oldings,Inc,
as the accountholder,when in truth and in fact,the accountholder was N FH Florida LLC dba
Finova LLC. Furthez;
,the bank provided statem ents retlectdifferentpayrollline ap otm ts and
totals significantly less than the inflated payroll line am otm ts and totals reflected the bazlk
statementsprovided byDEREK JAMESACREE.BB&T's(now Tnlist)serversarelocatedin
Case 9:22-cr-80157-AHS Document 12 Entered on FLSD Docket 10/11/2022 Page 4 of 7
North Carolina. First H om e Bank is H eadquartered in St. Petersburg,Florida, how ever, it's
depositsto custom erFH B D DA are serviced through Honolulu,H i. Furthez,the loan docum ents
were docusigned (with an IP Address originating in Palm Beach Gardens and Docusign is
headquartered in San Francisco,CA,with data centersoutside ofFlorida.
8. The approved PPP funds of$376,300 were deposited into a Silicon Valley Barlk
accotlntendingin0470andheldbyNationalFinancialHotdingslnc.forwhichDEREK JAMES
ACREE is a signatory. AfterthePPP proceedsw eredeposited into SVB accotlntending in 0470,
between M ay 1,2020 andDecember7,2020,funds,which incltlded awiretransferof$195,000
ofEIDL proceedsfrom BB &T accotlntending iù 5893,fundswere distributed and transferred in
anum berofw iresto variousunrelated entities'accotm ts,including w iresin an aggregate am otm t
of approximately $223,600 to co-conspirator 1's unrelated business account; approximately
$54,795anunzelatedbtlsinessaccount,controlledbyDEREK JAM ESACREE and.co-conspirator
1;approximately $114,000 to DEREK JAM ES ACREE'Sunrelated btlsiness accotlnts;and to
SallesJewelersfortheptlrchaseofjewelry.
0n April17,2020,DEM K JAM ES A CREE subm itted and catlsed to be subm itted
viawireaPPP loan application on behalfofNFH Florida LLC,with a listed adclressof4521PGA
Blvd.,Suite226,Palm Beach Gardens,FL. Thisapplication sotlghtapproximately $376,400 in
PPP funds based on purported average m onthly income of $150,560 and claim of 20 active
em ployees.A m ong the docllm ents provided by D EREK JAM ES A CREE in support of the
application wereabonower'sworksheetwhichreported atotalpayrollcostof$1,806,508forthe
lz-monthperiodprioriothedisasterandanIRSFonu 940(SchçduleR)purportedlypreparedby
Insperity PEO Services,LP for Tax Y ear 2019. The application w as approved and funded by
- TnlistBazzk,fozm erly BB& T,whose senrers are located in N orth Carolina.D ocum entation from
Case 9:22-cr-80157-AHS Document 12 Entered on FLSD Docket 10/11/2022 Page 5 of 7
lnsperity revealed thatthey did notprepare payrollforTY 2018 orTY 2019;how ever,Insperity
waspaid $80,983 dtuing theperiodofApril2020-Jtme2020.
10. AfterthePPP ftmdsweredeposited,approximately $374,000 wasmovéd tlzrough
nine separate w ires and 21 bank accounttransfers. Eightofthe w ires were t'
raced to unrelated
btlsiness accounts in w hich DEREK JAM ES A CREE and the co-conspirator 1 were authorized
signatories.
On April20,2020,DEREK JAM ES A CREE stlbm itted and catlsed to bestlbm itted
via w ire aPPP loan application on behalfofN ationalFinancialH oldingsTechnology LLC.,with
a listed address of 1400 Centrepark Blvd.,Suite 800,W est Palm B each,FL. This application
soughtapproximately $349,955 i.
n PPP fundsbased on apurported m onthly payrollof$139,982
and listed 18 active em ployees. DEREK JA M ES A CREE subm itted the PPP application as
G eneral Counsel. The application was approved and funded by Flagler Barlk. Am ong the
doctlm entsprovided in supportofthe application w asa PPP checklistsigned by DEREK JAM ES
ACREE,asOfficer,attesting tothecompany'spayrollpaym entforTY 2019as$257,374.21and
IRSForms940and941(ScheduleR)purportedlypreparedbyInsperity.lnsperityfoundnorecord
forForm s 940 or941had everbeen prepared forN ationalFinancialHoldings Technology LLC.
Orany oftherelated entities.
12. On April24,2020,a FlaglerBank accountwasopened with $100 and thebalzk
accountagreem ents listed DEREK JA M ES A CREE and the co-conspirator 1as signatories. The
accountw asfunded on July 27,2020,how ever,the proceedswere pulled back on July 29,2020.
FlaglerBank is Headquartered in W estPalm Beach,FL. A11PPP applicationssubm itted tllrough
A ugust8,2020 were received through SBA E--fran w ith serverslocated in V irginia.
Case 9:22-cr-80157-AHS Document 12 Entered on FLSD Docket 10/11/2022 Page 6 of 7
13. A s indicated above, D EREK JAM ES A CREE and co-conspirator 1 received
approximately $1,612,555 in EIDL and PPP loan funds as a result of the false claim s and
representationsinthéirEIDL andPPP loan applications.OftheEIDL andPPP proceedsreceived,
DEREK JAM ES ACREE retained approximately $869,682.83 forhis personaluse,to include
Am erican Expresscreditcard paym ents,U SSA creditcard paym entsform aintenance ofan Audi,
$11,000paym enttoTrump NationalGolfClub,monthly paymentsofchildschooltuition,marine
'
services fora vessel,SallesJewelersin the amotmtof $67,900,XO Globalin the am otmtof
$54,795forprivatejetservices,and$46,000downpaymentforahomelocatedat13058Flamingo
Terr.,Palm B each G ardens,FL.
1,DEREK JA M ES A CREE,am entering aplea ofguilty to theInform ation,which
chargesm econspiracy to com m itwire fraud,in violation ofTitle 18,U rtited States Code,Section
1349. Itlnderstand and acknowledge thatthe elem entsofthisoffenseare asfollow s:
(1)Two ormorepersons,in someway ormanner,agreed to try to accomplish a
com m on and unlaw fulplan to com m itw irefratld;and ,
(2)Thedefendantknew theunlawfulptlrposeoftheplanandwillfullyjoinedinit.
The elem entsofwirefraud are:
(1)Thedefendantknowinglydevisedorparticipatedinaschemetodefraud,orto
obtain m oney orproperty by using falsepretenses,representations,orprom ises;
(2)Thefalsèpretenses,representationsorpromiseswereaboutamatelialfact;
(3)Thedefendantactedwiththeintenttodefraud;and
(4) The defendant transmitted or caused to be transmitted by wire some
com munication in interstate com m erce to help carry outthe schem eto defraud.
Case 9:22-cr-80157-AHS Document 12 Entered on FLSD Docket 10/11/2022 Page 7 of 7
*
1,D EREK JAM ES A CREE,adm itthatthe statem entscontained in this factualprofferare
tzueand correct. 1furtheracknow ledge thatIhavereview ed thisfactualprofferw ith m y attorneys .
ChrisHaddad andDavid Roth,and1am satistiedwith therepresentation ofmy attorneysin this
m atter.
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Date: t ' ?A*-'
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