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Financial Advisor Sentenced to 8 Years for Defrauding Amish Investors

Posted on February 2nd, 2024 at 2:18 PM
Financial Advisor Sentenced to 8 Years for Defrauding Amish Investors

From the desk of Jim Eccleston at Eccleston Law 

Earl D. Miller, convicted in 2022 for defrauding Amish and Mennonite investors through his real estate investment firm, "5 Star," has been sentenced to over eight years in prison. Miller, 44, raised more than $4.3 million from approximately 70 investors, the majority being Amish and Mennonite individuals with limited investment experience.

As reported by FinancialAdvisor.com, the scheme involved fraudulent representations about investing in specific real estate projects. Miller diverted investor funds for other purposes, such as paying interest to other investors, undisclosed entities, a spiritual advisor, and a pontoon boat. The sentencing includes 97 months in prison, one year of supervised release, and restitution of $2.3 million.

Despite promising not to charge for managing investors' money and claiming investments in green energy, Miller misappropriated $1 million to settle a debt with a former business partner. The SEC had previously won a judgment against Miller in 2019, ordering him to pay over $5.2 million for defrauding investors. Although unrelated to the criminal conviction, Miller filed for bankruptcy in 2016 for 11 entities linked to 5 Star. In 2018, a Chapter 11 trustee negotiated a repayment agreement of $600,000, of which Miller had paid only $36,000 by April 2021.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

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