SEC Brings Charges Against Fraud Targeting Amish and Mennonite Investors
Philip E. Riehl, a Pennsylvania accountant, defrauded Amish and Mennonite investors of approximately $60 million by falsely promising guaranteed returns and secured loans with co-signers, while diverting funds to his failing dairy business, Trickling Springs Creamery, leading to SEC settlement with restitution and parallel criminal charges.
Philip E. Riehl, an accountant serving Amish and Mennonite communities, raised about $60 million over nearly a decade by selling promissory notes with false claims of guaranteed returns and loans backed by two co-signers and his personal guarantee. He concealed the financial distress of his own dairy business, Trickling Springs Creamery, and diverted investor funds to prop it up—including against an investor’s wishes in 2018—while issuing notes tied to the failing enterprise. In 2019, he admitted in a letter to investors that his representations were dishonest, and he subsequently settled SEC charges with injunctive relief and repayment of ill-gotten gains plus interest, while facing parallel criminal charges from the U.S. Attorney’s Office.
Philip E. Riehl, a Pennsylvania accountant serving Amish and Mennonite communities, defrauded approximately $60 million from community members over nearly a decade by selling promissory notes under false pretenses, claiming funds would be invested in secured business and real estate loans with two co-signers and his personal guarantee. In reality, he diverted investor money to his failing dairy business, Trickling Springs Creamery, concealing its mounting debt and financial collapse, and even redirected funds against an investor’s explicit wishes in late 2018. Riehl further misled investors by issuing promissory notes tied to the dairy without disclosing its dire condition, creating a Ponzi-like structure where new investments were used to sustain the failing enterprise. In a 2019 letter, he confessed to dishonesty, admitting his claims about co-signers gave a 'false sense of security' and that most funds were channeled into his personal projects. Trickling Springs Creamery filed for bankruptcy in December 2019, leaving investors unpaid. Riehl agreed to an SEC settlement subject to court approval, which includes injunctive relief and repayment of ill-gotten gains plus prejudgment interest, while the U.S. Attorney’s Office for the Eastern District of Pennsylvania filed parallel criminal charges. The SEC’s investigation, supported by the FBI and Pennsylvania state authorities, underscores the vulnerability of close-knit communities to trusted insiders exploiting faith and trust.
Extracted insights
- $60.00M $60 million $10M–$100M
- person criminal charges against riehl
- person jennifer chun barry
- person Mark R. Sylvester
- agency sec’s complaint
- agency sec’s investigation
- agency Securities and Exchange Commission
- company the commonwealth of pennsylvania department of banking and securities
- agency the federal bureau of investigation
- Securities and Exchange Commission charged a Pennsylvania man
- Securities and Exchange Commission announced criminal charges against Riehl
- SEC’s complaint alleges Riehl falsely claimed he required two co-signers on every loan
- SEC’s complaint alleges Riehl sold investors promissory notes issued by Trickling Springs Creamery without informing them about the company’s financial difficulties and mounting debt
- Riehl diverted money to Trickling Springs Creamery from at least one investor against the investor’s wishes
- Riehl agreed to settle the charges against him
- the settlement provides for injunctive relief and return of allegedly ill-gotten gains plus prejudgment interest
- the U.S. Attorney’s Office for the Eastern District of Pennsylvania announced criminal charges against Riehl
- SEC’s investigation was conducted by Paulina L. Jerez of the Philadelphia Regional Office
- SEC’s investigation was supervised by Ms. Gibson and Kingdon Kase
- the litigation is led by Mark R. Sylvester
- the litigation is supervised by Jennifer Chun Barry
- the SEC appreciates the assistance of the U.S. Attorney’s Office for the Eastern District of Pennsylvania
- the SEC appreciates the assistance of the Federal Bureau of Investigation
- the SEC appreciates the assistance of the Commonwealth of Pennsylvania Department of Banking and Securities
On Wednesday, Jan. 29, the Securities and Exchange Commission charged a Pennsylvania man with defrauding Amish and Mennonite community members by making false claims about the use of their funds and guaranteed returns. According to the SEC’s complaint, Philip E. Riehl provided accounting services to Amish and Mennonite communities and developed his own investment program, pooling money raised by selling promissory notes to community members. Riehl allegedly raised approximately $60 million over nearly a decade and promised to invest the funds in business and real estate loans to others in the religious community. According to the complaint, Riehl falsely claimed he required two co-signers on every loan, and would personally guarantee repayment with interest. The SEC’s complaint further alleges that Riehl also sold investors promissory notes issued by Trickling Springs Creamery, a dairy business that he owned, without informing the investors about the company’s financial difficulties and mounting debt. The complaint alleges that in late 2018 when the dairy was in dire straits, Riehl diverted money to it from at least one investor, against the investor’s wishes. In a 2019 letter to investors, Riehl allegedly apologized for his dishonesty, including repeatedly stating that he required two co-signers on each loan, which gave a “false sense of security, in that such a considerable percentage of the funds were channeled into my personal projects.” Trickling Springs Creamery ultimately failed, filing for bankruptcy in December 2019, and Riehl was unable to pay back investors. “Promises of guaranteed returns or investments without risk are classic warning signs of fraud,” said Kelly L. Gibson, Associate Regional Director of the SEC’s Philadelphia Regional Office. “It is important to learn as much as possible about your investments, even if it means questioning someone you know and trust, including someone within your own faith-based community.” The SEC’s complaint charges Riehl with violating the antifraud provisions of the federal securities laws. Riehl agreed to settle the charges against him. The settlement, which is subject to court approval, provides for injunctive relief and return of allegedly ill-gotten gains plus prejudgment interest. In a parallel action, the U.S. Attorney’s Office for the Eastern District of Pennsylvania announced criminal charges against Riehl. The SEC’s investigation was conducted by Paulina L. Jerez of the Philadelphia Regional Office and supervised by Ms. Gibson and Kingdon Kase. The litigation is led by Mark R. Sylvester and supervised by Jennifer Chun Barry. The SEC appreciates the assistance of the U.S. Attorney’s Office for the Eastern District of Pennsylvania, the Federal Bureau of Investigation, and the Commonwealth of Pennsylvania Department of Banking and Securities.
On Wednesday, Jan. 29, the Securities and Exchange Commission charged a Pennsylvania man with defrauding Amish and Mennonite community members by making false claims about the use of their funds and guaranteed returns. According to the SEC’s complaint, Philip E. Riehl provided accounting services to Amish and Mennonite communities and developed his own investment program, pooling money raised by selling promissory notes to community members. Riehl allegedly raised approximately $60 million over nearly a decade and promised to invest the funds in business and real estate loans to others in the religious community. According to the complaint, Riehl falsely claimed he required two co-signers on every loan, and would personally guarantee repayment with interest. The SEC’s complaint further alleges that Riehl also sold investors promissory notes issued by Trickling Springs Creamery, a dairy business that he owned, without informing the investors about the company’s financial difficulties and mounting debt. The complaint alleges that in late 2018 when the dairy was in dire straits, Riehl diverted money to it from at least one investor, against the investor’s wishes. In a 2019 letter to investors, Riehl allegedly apologized for his dishonesty, including repeatedly stating that he required two co-signers on each loan, which gave a “false sense of security, in that such a considerable percentage of the funds were channeled into my personal projects.” Trickling Springs Creamery ultimately failed, filing for bankruptcy in December 2019, and Riehl was unable to pay back investors. “Promises of guaranteed returns or investments without risk are classic warning signs of fraud,” said Kelly L. Gibson, Associate Regional Director of the SEC’s Philadelphia Regional Office. “It is important to learn as much as possible about your investments, even if it means questioning someone you know and trust, including someone within your own faith-based community.” The SEC’s complaint charges Riehl with violating the antifraud provisions of the federal securities laws. Riehl agreed to settle the charges against him. The settlement, which is subject to court approval, provides for injunctive relief and return of allegedly ill-gotten gains plus prejudgment interest. In a parallel action, the U.S. Attorney’s Office for the Eastern District of Pennsylvania announced criminal charges against Riehl. The SEC’s investigation was conducted by Paulina L. Jerez of the Philadelphia Regional Office and supervised by Ms. Gibson and Kingdon Kase. The litigation is led by Mark R. Sylvester and supervised by Jennifer Chun Barry. The SEC appreciates the assistance of the U.S. Attorney’s Office for the Eastern District of Pennsylvania, the Federal Bureau of Investigation, and the Commonwealth of Pennsylvania Department of Banking and Securities.