Man Pleads Guilty to Multi-Million Dollar Scheme to Defraud Consumers

PEORIA, Ill. –Jeffrey D. Gibbs, 58, of Farmer City, Illinois pleaded guilty on May 14, 2024, to 6 felony charges related to his scheme to defraud local boat owners and the banks that financed his business.

Gibbs and co-defendant Kara M. Wilkey, 49, of Maroa, Illinois, were indicted in December 2020, with multiple counts of wire fraud, bank fraud, mail fraud and aggravated identity theft. Wilkey pleaded guilty to 6 of the charges in August 2021. Sentencings for both Gibbs and Wilkey have been scheduled for September 19, 2024, at 9:00 am in the U.S. Courthouse in Peoria, Illinois before U.S. District Judge James E. Shadid.

Gibbs and Wilkey were two employees of the now defunct boat and watercraft dealership, Mid Illinois Boats, Inc., that did business as Clinton Marine II. Gibbs and Wilkey used the dealership to defraud customers and lending institutions out of approximately $4.7 million.

In pleading guilty, Gibbs and Wilkey admitted that, from January 2014 to July 2019, they used their positions with Clinton Marine II, which included management of day-to-day operations, to carry out a fraud involving floorplan financing. The fraud included obtaining loans on fictitious boats and on false transactions; taking out loans using forged signatures; selling boats on behalf of customers, but not paying off the customer’s loan or remitting payment to the seller; and, collecting payment for taxes, titles, and fees, but failing to pay those expenses.

Both Gibbs and Wilkey were released on statutory conditions of release pending sentencing.

Gibbs plead guilty to 3 counts of wire fraud, 2 counts of mail fraud and 1 count of aggravated identity theft. He faces total statutory penalties of up to 102 years’ imprisonment, a fine of $1,250,000, or twice the loss to the victims, and up to 4 years’ supervised release upon completion of imprisonment.

Wilkey pleaded guilty to 3 counts of wire fraud, 2 counts of bank fraud and 1 count of aggravated identity theft. She faces total statutory penalties of up to 122 years’ imprisonment, a fine of $3,000,000, or twice the loss to the victims, and up to 5 years’ supervised release upon completion of imprisonment.

The case investigation was conducted by the Federal Bureau of Investigation, Springfield Field Office, with the assistance of the DeWitt County Sheriff’s Office; the Illinois Department of Natural Resources; and the Illinois Secretary of State. Assistant U.S. Attorney Douglas F. McMeyer is representing the government in the case prosecution.