Mennonite and Amish Groups Allegedly Scammed by Berks County Accountant in a Colossal Pyramid Scheme
On Friday, Federal prosecutors announced that a Berks County accountant has been charged with one of the greatest Ponzi schemes in the history of the Pennsylvania.
U.S. Attorney William McSwain disclosed that Philip Elvin Riehl, 68, of Bethel Township, Berks County, PA was charged with conspiracy to convey securities fraud, wire fraud and similar offences. Investigators assert Riehl's scheme targeted hundreds of Mennonite and Amish religious people in and outside Pennsylvania over 10 years and profited $60 million.
The Fraudulent Investment Plan Under Trickling Springs Creamery
According to McSwain, Riehl fraudulently solicited sums in the tens of millions of dollars in investments from his accounting clients and others into a false investment plan that he managed. Riehl then diverted funds from the program to one Trickling Springs Creamery, LLC, a creamery based in Franklin County– of which he was an owner. Riehl also fraudulently solicited direct investments in Trickling Springs Creamery. "Riehl allegedly made material misrepresentations about the safety and security of this investment program and the performance of the program," McSwain said. "He also made misrepresentations and omissions about the creamery business and financial condition."
The report further asserts that Riehl offered material misrepresentations concerning the protection and surety of these investments in his program and about the achievement of the program, as well as misconceptions and omissions about the creamery’s affair and financial circumstance. Trickling Springs Creamery declared it was discontinuing services in September 2019 and listed a bankruptcy petition in December 2019.
Mennonite and Amish Religious Groups Get Scammed in Affinity Fraud
The charges have established what is sometimes regarded as “affinity fraud,” which typically entails investment scams that prey upon members of identifiable organizations, such as religious or ethnic populations. These sorts of fraudulent schemes abuse the trust and harmony that exist in societies of people who share mutual interests or dogmas.
The victims of the Riehl’s alleged scheme were commonly members of the Mennonite or Amish religious societies who desired a trustworthy and protected investment, managed in their community and in a way consistent with their religious teachings.
Asides the criminal prosecution, McSwain unveiled that the Dept. Of Banking and Securities Pennsylvania had initiated an investigation in relations to the sale of Trickling Springs Creamery. “These investors were looking for honesty and integrity when deciding where and with whom to invest their money,” said U.S. Attorney McSwain. “According to the information, Riehl presented himself as a trusted member of their religious community, only to betray that trust and swindle them out of tens of millions of dollars. It is only natural for members of a tightly knit community to want to take care of one another, but Riehl did not care about anyone but himself. Fraudsters must be held accountable under the law – no matter what community they belong to – for justice to prevail.”
If Riehl is convicted of the alleged charges, state prosecutors say he is liable to face up to 45 years in prison and USD $5 million fine among others.
