JACKSONVILLE, fla. – There was more insight on Friday into what took place behind closed doors in events that could have led to what some say would have been the biggest scheme to defraud the City of Jacksonville.
The ongoing federal trial of ex-JEA CEO Aaron Zahn and CFO Ryan Wannemacher, which entered Day 8 on Friday, involves a proposed bonus plan that prosecutors said could have had some executives walking away with millions of dollars had the utility been sold.
Melissa Dykes, a former JEA COO, was one of the top executives who could have also made millions had the plan not been discovered and the potential sale of JEA called off.
Dykes, who was on the stand most of the day, was there when this all unfolded in 2019 but she also served as the head of JEA during two short periods. She emphasized on Friday that she thought the board had all the facts behind this bonus plan and was surprised they approved it, even though she could have walked away with millions as well.
On the stand, she was asked again by prosecutors if she had anything to do with coming up with the bonus plan also known as the performance unit plan or PUP.
MORE: Ex-JEA board chair had no idea plan she voted for could net $345M in bonus payouts if utility was sold: testimony | As city council auditors pushed for answers on controversial bonus plan, they say they got no response from JEA execs | FBI agent continues to detail investigation into ex-JEA execs accused in conspiracy case on Day 3 of trial | FBI agent details investigation into ex-JEA execs accused in conspiracy case on Day 2 of trial | Ex-JEA execs accused of orchestrating Jacksonville’s largest fraud scheme layout defense on Day 1 of federal trial
Prosecutors grilled her about the background of how it was devised, who knew about the potential payout and why some calculations were not readily made available to board members. Dykes emphasized again that she thought bonus plans for government agencies like JEA are political suicide. She said there were still battle scars from previous employee bonuses that had been paid out in the past.
Dykes said on the stand that when the PUP was being discussed, the reason she did not speak out as a top executive is .. she had thought the board members knew of the potential payouts after meeting privately with Zahn and she was very surprised when it was approved.
Dykes said she only found out later from then-JEA board chairman April Green that Green felt misled when she learned that the payouts could have meant millions for top executives.
Dykes again was asked about how she felt about Wannemacher she spoke highly of his background and said they are friends.
The treasurer of JEA at the time was on the stand later in the afternoon and said he was told by Wannemacher that Zahn had said not to talk publicly about the potential payout of the bonus plan.
Dykes said plenty on the stand, but when News4JAX tried to talk with her after she was done testifying her attorney Hank Coxe said they could not answer questions while the trial was ongoing.
The trial resumes Monday and is expected to last three more weeks.
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