Amish man to plead guilty to $17M fraud

3/14/2012

CLEVELAND -- An Ohio man will plead guilty in federal court to defrauding fellow Amish in 29 states out of nearly $17 million as part of a case that the man's church had hoped to shield from publicity and outside involvement, the government said Tuesday.

The attorney for Monroe L. Beachy, 77, owner of A&M Investments in Sugarcreek, filed a notice informing federal court of his "intention to plead guilty as charged."

U.S. attorney's spokesman Mike Tobin confirmed the pending guilty plea. Mr. Beachy declined to comment, and his attorney didn't immediately return a message seeking comment.

An indictment accuses Mr. Beachy of promising investors safe securities but moving money to riskier investments. The indictment alleges that nearly 2,700 people and entities, including an Amish community loan fund, lost about $16.8 million since 2006. The investments directed by Mr. Beachy "were not the 'safe' investments as reported to his clients or investors," the indictment said.

Mr. Beachy belongs to an Amish church near Sugarcreek.

He is charged with one count of mail fraud, punishable by up to 20 years in prison. Prosecutors stopped short of saying whether he personally profited or just made bad investments but noted he had made a living for years offering investor services to the Amish.

Ohio's Amish communities, concentrated in rural counties south and east of Cleveland, have a modest lifestyle, traveling by horse and buggy and forgoing most modern conveniences. It's uncommon for them to take their disputes public and enlist authorities.

In announcing the indictment last fall, U.S. Attorney Steven Dettelbach said the case highlighted the risks of fraud involving trusting investors from a group with similar ethnic, religious, or personal backgrounds.

The religion issue also emerged when A&M Investments filed for bankruptcy in June, 2010, listing about $33 million in liabilities and nearly $18 million in assets.

A bankruptcy judge rejected a bid by members of Mennonite and Amish communities to let them settle the matter out of court. Members of the Plain Community said Mr. Beachy had "accepted the counsel" of his church.

Mr. Beachy tried in October to plead no contest on religious grounds. He didn't elaborate, and his attorney advised against the move.

U.S. District Judge Benita Pearson has changed Thursday's pretrial hearing to a change-of-plea hearing.