Florida attorney sentenced for $1.6 Million COVID-19 relief fraud

FLORIDA – A Florida attorney has been sentenced in connection with an alleged $1.6 million COVID-19 relief fraud, the U.S. Attorney’s Office for the Southern District of Florida (USAO) has announced.

According to the USAO, Derek James Acree, 47, of Palm Beach County, has been sentenced to 41 months in prison for submitting fraudulent loan applications seeking more than $1.6 million in forgivable Economic Injury Disaster Loans (EIDL) and Paycheck Protection Program (PPP) loans. The loans are guaranteed by the Small Business Administration (SBA) under the Coronavirus Aid, Relief, and Economic Security Act, the USAO said.

“Acree obtained approximately $1.6 million by submitting fraudulent EIDL and PPP loan applications for companies he owned either in whole or in part,” the USAO said in its announcement.

“These companies included National Financial Holdings Inc., NFH Florida LLC, DBA Finova Financial LLC, and National Financial Holding Technology LLC. The loans misrepresented the number of employees, payroll expenses, and gross revenues.”

Reportedly, after obtaining the fraudulent loan proceeds, Acree transferred some of it to others and a portion was used as a down payment for the purchase of his home, as well as used to purchase jewelry, travel, and make repairs on his boat/home.

Acree had entered a guilty plea to conspiracy to commit wire fraud in October 2022. In addition to prison, he was ordered to pay $1.26 million in restitution and $1.6 million in asset forfeiture.

Juan Antonio Gonzalez, U.S. Attorney for the Southern District of Florida, and Special Agent in Charge Robert M. Dewitt, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.

FBI West Palm Beach investigated the case. Assistant U.S. Attorney Robin W. Waugh prosecuted it, and Assistant U.S. Attorney Joshua Pastor handled asset forfeiture.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.