Ohio Man Indicted for Operating $16.8 Million Investment Scheme

CLEVELAND—A federal grand jury returned an indictment against Monroe L. Beachy, 77, of Sugarcreek, Ohio, for one count of mail fraud, federal officials announced today. Beachy is accused of operating a scheme that defrauded nearly 2,700 people, businesses and other entities out of more than $16.8 million, according to the indictment.

“This is fraud on a massive scale,” said Steven M. Dettelbach, U.S. Attorney for the Northern District of Ohio. “This defendant took advantage of people’s trust in him and squandered the life savings of hundreds upon hundreds of families.”

Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland office, said, “Thousands of investors entrusted their life savings to the integrity of Mr. Beachy’s investment business. Unfortunately, he violated this trust over and over again resulting in a combined loss of over $16 million. The FBI and its partners were committed to unraveling this elaborate scheme, which is outlined in the indictment, and to work with those victims who were affected by this large-scale investment fraud.”

According to the indictment, beginning in or about 1990 and continuing through in or about June, 2010, Beachy represented to investors that money deposited with his investment company, A&M Investments, would be safe and would secure a positive rate of return.

He specifically represented to investors that A&M would invest in Ginnie Mae Bond Funds, a type of mortgage-backed security issued by the Government National Mortgage Association and guaranteed by the full faith and credit of the U.S. government. Beachy did not invest the money as represented, according to the indictment.

Among the investors that lost money was the Amish Helping Fund, which was established to assist members of the Amish community with the purchase of land and buildings, among other things, according to the indictment.

The indictment resulted from an investigation conducted by the U.S. Postal Service, the Securities and Exchange Commission, and the FBI. The case was presented for indictment by Assistant U.S. Attorney Linda H. Barr.

If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.

An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

This indictment is part of efforts underway by President Barack Obama’s Financial Fraud Enforcement Task Force. President Obama established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes. For more information about the task force visit: www.stopfraud.gov.