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2011-02-18 -Lurid Crime Tales-

'Amish Madoff' Charged with Ponzi Scheme

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Posted by Anguper Hupomosing9418 2011-02-18 00:50|| || Front Page|| [2 views ] Top

#1 Apparently the case was settled this morning between Beachy & the SEC:
Beachy's scheme lasted long enough to where second-generation Amish were investing with him.

While Beachy's case smells like a Ponzi scheme, the SEC didn't charge him as such. "It's certainly a scheme where investors thought their money was being used one way but it was used in another way, which is one of the hallmarks of a Ponzi scheme," says John Sikora, an attorney with the SEC's Chicago office. "But at the same time, we don't allege he used the funds to enrich himself."

The SEC filed a complaint, but Beachy agreed to a settlement without admitting or denying the allegations. The settlement, which was approved by the court on Friday morning, doesn't impose a civil penalty against Beachy due to his financial situation.

SEC attorney Brian Fagel says the roughly $18 million remaining from the original $33 million raised by Beachy is controlled by the Chapter 7 bankruptcy trustee, and those funds will eventually be distributed to investors.

Posted by Anguper Hupomosing9418 2011-02-18 16:53|| 2011-02-18 16:53|| Front Page Top

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