A Dallas man has admitted to his role in a $50 million Ponzi scheme involving off-the-road tires. John K. Eckerd, Jr., 60, pleaded guilty in federal court to charges of conspiring to commit wire fraud and tax crimes. He received at least $14 million from the fraudulent tire sales operation.
Eckerd's plea agreement suggests a prison sentence ranging from 36 to 109 months. He conspired with Jason E. Adkins, 47, of Jackson, Ohio, who has already been convicted and sentenced for his involvement in the scheme.
Court documents reveal that Eckerd and others misled investors into believing they were engaged in buying and selling large tires used on earth-moving and mining equipment. However, few transactions occurred as described. Instead, funds were diverted for personal use or to repay other victims. Investors often either lost money or received returns funded by subsequent victims' investments.
Additionally, Eckerd collaborated with Adkins to evade income taxes starting mid-2016 by reclassifying payments as loans and concealing income through shell entities. He admitted to evading $1,028,454 in taxes.
The final restitution amount will be determined at sentencing. The plea includes forfeiting $14 million, partially covered by Eckerd’s home in McKinney, Texas.
The guilty plea was announced by Kenneth L. Parker, United States Attorney for the Southern District of Ohio; Karen Wingerd of IRS Criminal Investigation; and Elena Iatarola of the FBI's Cincinnati Division. Assistant United States Attorneys S. Courter Shimeall, Peter K. Glenn-Applegate, and David J. Twombly are prosecuting the case.