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

Is Wall Street's AI risk analysis right for RIA portfolios?
Is Wall Street's AI risk analysis right for RIA portfolios?

Anthropic's Millennium partnership moves AI from reactive tool to proactive risk monitor — but other wealth tech leaders question its fit for RIA practices.

AI is resetting trust in wealth services, says Advisor360's new CEO
AI is resetting trust in wealth services, says Advisor360's new CEO

Milind Mehere offers perspective on why ambient AI, not smarter models, will define the next decade of wealth tech.

Ex-indy rep turned phony finfluencer gets two years in prison
Ex-indy rep turned phony finfluencer gets two years in prison

Kenneth Thom, 42, reinvented himself as a finfluencer known as “K Money.”

Trump sued over Truth Social's paid early-access data feed
Trump sued over Truth Social's paid early-access data feed

A press-freedom lawsuit filed in Manhattan challenges the president's $100,000-a-month Truth API service used by trading firms.

Zero-fee IRAs quietly cost savers up to $1,400 a year, PensionBee study finds
Zero-fee IRAs quietly cost savers up to $1,400 a year, PensionBee study finds

Research reveals six hidden costs inside "zero-fee" IRAs, with one investment mistake potentially amounting to $170,000 over a 30-year period.

SPONSORED Direct indexing webinar targets tax-loss harvesting amid market swings

Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains

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