SEC v. Philip E. Riehl, No. LR-24728, Eastern District of Pennsylvania (Jan. 31, 2020) — Press Release
raw: Philip E. Riehl
Philip E. Riehl, No. 2:20-cv-00510 (Jan. 31, 2020)
summary
Philip E. Riehl defrauded Amish and Mennonite investors of $60 million through a false investment program, promising guaranteed returns and diverting funds to his struggling dairy business, and agreed to settle SEC charges.
paragraph
Philip E. Riehl, a Pennsylvania man, defrauded Amish and Mennonite community members by raising approximately $60 million through a false investment program. Riehl allegedly diverted funds to his own struggling dairy business, Trickling Springs Creamery, which ultimately filed for bankruptcy in December 2019. He is charged with violating anti-fraud provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934.
narrative
Philip E. Riehl, a Pennsylvania man, defrauded Amish and Mennonite community members by raising approximately $60 million through a false investment program, promising guaranteed returns and falsely claiming to require co-signers on loans. Riehl allegedly diverted funds to his own struggling dairy business, Trickling Springs Creamery, which ultimately filed for bankruptcy in December 2019. He misled investors by claiming all loans required two co-signers and were personally guaranteed, when in fact funds were diverted to prop up his failing business and personal projects. Riehl concealed the dairy’s severe financial distress and ignored investor directives. He agreed to settle the SEC’s civil charges, agreeing to injunctive relief and repayment of ill-gotten gains plus interest, while also facing parallel criminal charges from the U.S. Attorney’s Office. The SEC highlighted the case as a warning to faith-based communities about investment fraud targeting trust and shared values.
Classified affinity-fraud(confidence 100%). EDGAR detection: forms Form D· recall 58% / precision 2%. detection rule →
Parties
Securities and Exchange CommissionPhilip E. Riehl
Keywords
riehlphilip riehlinvestorssec'samish mennonitesecurities exchangesecuritiespennsylvaniaphilipfraudcommunityinvestmentjanuary securitiesexchange commissioncommunity members
Exhibits & Attached Documents (1)
Extracted insights
Dollar amounts 1
- $60.00M $60 million $10M–$100M
Entities 3
- person philip e. riehl
- agency Securities and Exchange Commission
- organization Securities and Exchange Commission
Triples 17
- Philip E. Riehl defrauded Amish and Mennonite community members by making false claims about the use of their funds and guaranteed returns
- Securities and Exchange Commission charged Philip E. Riehl with fraud targeting Amish and Mennonite investors
- Philip E. Riehl defrauded Amish and Mennonite community members by making false claims about the use of their funds and guaranteed returns
- Securities and Exchange Commission charged Philip E. Riehl with fraud targeting Amish and Mennonite investors
- Securities and Exchange Commission charged Philip E. Riehl
- Securities and Exchange Commission brought charges in fraud targeting Amish and Mennonite investors
- Philip E. Riehl defrauded Amish and Mennonite community members
- Philip E. Riehl provided accounting services
- Philip E. Riehl developed investment plan
- Philip E. Riehl defrauded Amish and Mennonite community members by making false claims about the use of their funds and guaranteed returns
- Securities and Exchange Commission charged Philip E. Riehl with fraud targeting Amish and Mennonite investors
- Philip E. Riehl defrauding Amish and Mennonite community members
- Philip E. Riehl provided accounting services to Amish and Mennonite communities
- Philip E. Riehl developed his own investment program
- Philip E. Riehl made false claims about the use of their funds and guaranteed returns
- Securities and Exchange Commission charged Philip E. Riehl with defrauding Amish and Mennonite community members
- Securities and Exchange Commission filed Civil Action No. 2:20-cv-00510 (E.D. Pa.)
PDF (from attached: complaint)
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Extracted body text (3,242c)
SEC Brings Charges in Fraud Targeting Amish and Mennonite Investors Litigation Release No. 24728 / January 31, 2020 Securities and Exchange Commission v. Philip E. Riehl, Civil Action No. 2:20-cv-00510 (E.D. Pa. filed January 29, 2020) On Wednesday, January 29, 2020, 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. The SEC's complaint, filed in federal court in Philadelphia, Pennsylvania, charges Riehl with violating the anti-fraud provisions of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. 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 Kelly L. Gibson and Kingdon Kase. The SEC's litigation was led by Jennifer C. Barry and Mark R. Sylvester. The SEC appreciates the assistance of the U.S. Attorney's Office for the Eastern District of Pennsylvania, the Federal Bureau of Investigations, and the Commonwealth of Pennsylvania Department of Banking and Securities. The SEC's Office of Investor Education and Advocacy and the Retail Strategy Task Force encourage investors to review the Investor Alerts Avoiding Investment Fraud in Your Faith-Based Community and Have Something in Common with Someone Selling an Investment? It May Make You a Target for Fraud to protect themselves and their communities from investment fraud. SEC Complaint
OCR text (3,242c · html-text · 99% conf)
SEC Brings Charges in Fraud Targeting Amish and Mennonite Investors Litigation Release No. 24728 / January 31, 2020 Securities and Exchange Commission v. Philip E. Riehl, Civil Action No. 2:20-cv-00510 (E.D. Pa. filed January 29, 2020) On Wednesday, January 29, 2020, 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. The SEC's complaint, filed in federal court in Philadelphia, Pennsylvania, charges Riehl with violating the anti-fraud provisions of Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. 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 Kelly L. Gibson and Kingdon Kase. The SEC's litigation was led by Jennifer C. Barry and Mark R. Sylvester. The SEC appreciates the assistance of the U.S. Attorney's Office for the Eastern District of Pennsylvania, the Federal Bureau of Investigations, and the Commonwealth of Pennsylvania Department of Banking and Securities. The SEC's Office of Investor Education and Advocacy and the Retail Strategy Task Force encourage investors to review the Investor Alerts Avoiding Investment Fraud in Your Faith-Based Community and Have Something in Common with Someone Selling an Investment? It May Make You a Target for Fraud to protect themselves and their communities from investment fraud. SEC Complaint