The former CEO of a public utility in north Florida has been handed a four-year prison sentence for his involvement in a plan to privatize the utility, which prosecutors asserted would have financially benefited him and his associates by tens of millions of dollars while burdening taxpayers. Aaron Zahn was convicted of wire fraud and conspiracy earlier this year before being sentenced to federal prison this week.
Zahn’s defense lawyer contended that the privatization plan never materialized, and no funds were disbursed as part of the scheme involving the Jacksonville Electric Authority, also known as JEA.
Taking over as the CEO of the authority in 2018, Zahn swiftly initiated a campaign to persuade JEA’s board of directors that privatization was imperative, alleging that without it, the authority would face significant challenges and may have to lay off over 500 employees, investigators stated.
Nonetheless, in 2019, the city council auditor of Jacksonville discovered a secretive incentive initiative devised by Zahn, which would have allocated $40 million to the CEO and $10 million to other top JEA executives if the utility sale had proceeded, according to the U.S. Attorney’s Office.
Following the halt of the sale process, Zahn was terminated from his position.
FBI Special Agent in Charge Kristin Rehler emphasized, “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,” in response to the case.
