U.S. District Judge Brian J. Davis has sentenced former Jacksonville Electric Authority (JEA) CEO Aaron Zahn to four years in federal prison for conspiracy to steal and embezzle city funds and wire fraud. The conviction follows a four-week jury trial that concluded on March 14, 2024.
Evidence presented during the trial revealed that Zahn, during his tenure as CEO, orchestrated a scheme to privatize JEA and enrich himself and other executives through a hidden bonus plan known as the Performance Unit Plan (PUP). The PUP was designed to pay out massive bonuses tied to the sale of the utility, potentially totaling $315 million.
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Zahn’s personal gain from the PUP was estimated to be around $40 million. The plan, based on a fabricated stock concept for the public utility, was engineered to guarantee substantial payouts upon JEA’s sale.
The fraudulent scheme was exposed in November 2019 by the City of Jacksonville Council Auditor, leading to the cancellation of the privatization process and Zahn’s termination.
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“Fraud and corruption pose a fundamental threat to our national security and our way of life, and the FBI will not tolerate those who seek to deceive American citizens. As a taxpayer, you are entitled to decisions based on the public’s best interest, and we take very seriously our responsibility to investigate and aggressively pursue individuals who attempt to defraud publicly funded institutions in a selfish effort to line their own pockets,” said Special Agent in Charge Kristin Rehler of the FBI Jacksonville Field Office. “FBI Jacksonville is committed to ensuring that anyone who violates the public’s trust is held accountable to the fullest extent possible.”
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