Adviser in dutch for allegedly scamming Amish clients

The Securities and Exchange Commission has charged a 77 year-old Amish financial adviser with defrauding his fellow Amish in an investment scheme that allegedly went on for 24 years.
JAN 30, 2011
The Securities and Exchange Commission has charged a 77 year-old Amish financial adviser with defrauding his fellow Amish in an investment scheme that allegedly went on for 24 years. From 1986 through June 2010, Monroe L. Beachy, who until June ran Sugarcreek, Ohio-based A&M Investments, raised $33 million from more than 2,600 investors — most of whom were Amish, according to the SEC complaint. Mr. Beach allegedly told investors that their money would be used to purchase risk-free U.S. government securities. Instead, he made speculative investments and lied about it, according to the complaint, which was filed Feb. 15 in the U.S. District Court for the Northern District of Ohio. Mr. Beachy filed for bankruptcy in June 2010. Up until that point, the SEC claims, he lied about how he was investing his clients' money. The commission said, “Beachy also never told his investors that he had experienced significant losses on the underlying investments.” Rather, he “provided his investors with monthly account statements that showed fabricated gains,” the SEC said. By the time Mr. Beachy filed for bankruptcy in June 2010, less than $18 million of the original $33 million of investor money remained. Mr. Beachy, reached at his home, declined to comment. Because of the length of Mr. Beachy's alleged scheme, generations of families were affected because older generations of Amish investors referred their children to him. “Amish children did in fact purchase investment contracts from Beachy,” according to the complaint. Mr. Beachy has agreed to settle the SEC's charges without admitting or denying the allegations, according to an SEC notice about the complaint. The SEC is not imposing a civil penalty on him, based on his financial condition, according to the agency's notice.

Latest News

Newsom wants nationwide billionaires tax as presidential bid may loom on the horizon
Newsom wants nationwide billionaires tax as presidential bid may loom on the horizon

“It’s time for an economic reset,” wrote the California governor, in a post on X.

Maryland regulators spank fledgling art-focused RIA Masterworks over registration snafus
Maryland regulators spank fledgling art-focused RIA Masterworks over registration snafus

Masterworks was launched in 2017 but its RIA, Masterworks Advisers, is just three years old.

Investors allege Miami operator took over $1.5 million in EB-5 scheme
Investors allege Miami operator took over $1.5 million in EB-5 scheme

One 2017 form, no broker license, and a $42 million gap they say surfaced on a webinar.

Gen X, millennials lag in retirement confidence amid knowledge gap
Gen X, millennials lag in retirement confidence amid knowledge gap

Fewer than half of Americans in their peak earning years feel on track for retirement, while many say limited financial knowledge and access to professional guidance are holding them back.

Advisor moves: Veteran-led UBS team overseeing $460 million migrates to Merrill
Advisor moves: Veteran-led UBS team overseeing $460 million migrates to Merrill

Meanwhile, Wells Fargo hauled advisors overseeing $825 million in the West Coast, while Wedbush has welcomed a seasoned professional from Stifel in California.

SPONSORED Who builds the income when the pension disappears?

Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income

SPONSORED Why direct indexing stopped being optional

Direct indexing is on pace to outgrow ETFs and mutual funds. Northern Trust's Ken Lassner explains why the advisors who get it wish they had started sooner.