South Florida attorney sentenced to prison for spending COVID relief money on jewelry, private jet, and Trump golf club membership

A Palm Beach County attorney used Delaware-based limited-liability companies to obtain economic relief loans designed to keep small businesses afloat during the pandemic, receiving over $1.6 million, according to federal prosecutors.

The government required that loan proceeds go towards payroll costs, mortgages, rent and utilities.

Instead, Derek Acree, 47, spent up to half of that money on the upkeep of an expensive lifestyle: maintaining an Audi and a boat, a child’s school tuition, nearly $70,000 in jewelry, private jet services, a down payment for a Palm Beach Gardens home, and an $11,000 payment to Trump National Golf Club in Jupiter.

Acree will now have to repay almost twice what he received. He was sentenced Wednesday to 41 months in prison, as well as ordered to pay $1.6 million in asset forfeiture and $1.26 million in restitution, according to a news release from the United States Attorney’s Office for the Southern District of Florida.

In October, Acree pleaded guilty to conspiracy to commit wire fraud. Investigators found that, with the assistance of an unidentified co-conspirator, Acree had submitted loan applications on behalf of multiple Delaware-based LLCs that he owned or shared ownership of, receiving hundreds of thousands of dollars for each company:

For National Financial Holdings Inc., of which he was Chief Operating Officer, Acree received over $500,000 from an Economic Injury Disaster Loan, designed to help small businesses and homeowners in regions affected by disasters, which included the COVID-19 pandemic. He received over $300,000 in Paycheck Protection Program funds, another loan program designed to help small businesses keep workers employed.
For NFH Florida LLC, of which he was the Managing Member, Acree received over $300,000 in PPP loan funds.
For National Financial Holdings Technology LLC, of which he was Chief Operating Officer, Acree received over $300,000 in PPP funds.

On each loan application, Acree lied about the number of employees, the average monthly payroll, and/or gross revenue, according to court records.

After receiving the money, Acree moved the funds through nine separate wires and 21 bank account transfers, including over $200,000 to an account owned by his co-conspirator. He then spent over $800,000 of that money on personal use, court records say.

Acree had sought an additional $2.2 million on two other loan applications, both of which were denied. As part of the plea agreement, the government chose not to pursue charges relating to the additional $2.2 million in loans.