Amish Investment Advisor Sentenced for Fraud

by Wall Street Fraud on June 26, 2012

Philadelphia investment fraud lawyerAn Amish investment adviser was recently sentenced to over six years in prison for an investment fraud that targeted members of his own community. While the Amish investment fraud may be unusual, it is not uncommon for unscrupulous advisers and brokers to target specific communities and groups to which they belong.

Monroe Beachy, 78, admitted to sending his clients false monthly and quarterly statements, claiming their investments were profitable when they were really suffering significant losses. Beachy claimed that he thought he could recoup the losses, if given enough time. However, prosecutors disagreed, arguing that he was obligated to tell investors the truth.

"Obviously it's the government's position that it was Mr. Beachy's responsibility. He's the one that each month or each quarter falsified those investment statements, so he's the one that is responsible to blame," said U.S. Assistant Attorney Linda Barr.

According to prosecutors, Beachy operated A & M Investments until he filed for bankruptcy several years ago. At that time, he reportedly had approximately 3,300 clients in 29 states, mostly Amish and Mennonite. He owed them more than $16 million. Beachy will also be required to make restitution at the conclusion of his bankruptcy case, which could be $10 million to $12 million.

Source: WYTV.com

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