Recovering Losses caused by Investment Misconduct

Beachy's Request to Withdraw Bankruptcy Filing Denied by Court

Monroe Beachy, of Sugarcreek, Ohio, filed for Chapter 7 in June of 2010, after losing almost half of the $33 million that 2,600 (mostly Amish) investors placed in his care. Shortly thereafter, approximately 2,000 of the defrauded investors protested that Beachy's bankruptcy proceeding violated their religious beliefs, which prohibit resolving financial disputes through a court of law ("Amish bid to close case is denied," The Washington Post, March 27, 2011).

As reported in The Washington Post, Beachy (also Amish) acknowledged the investors' protests and, on March 25, asked the court to allow him to withdraw his filing so that the Amish could resolve the matter themselves. Federal bankruptcy judge Russ Kendig denied Beachy's request and cited part of the First Amendment as the basis for his decision:

"The debtor in this case is clearly asking this court to delegate its function to a religious body. Any such delegation is forbidden by the Establishment Clause."

According to an SEC complaint filed in February, the $33 million invested with Beachy's company (A&M Investments) was obtained through an "unregistered and fraudulent offering of securities" that Beachy conducted for a period of approximately 24 years. (For more information about the complaint against Beachy, see our 2/17/11 blog.) Beachy settled with the SEC on Feb. 15, 2011 in the United States District Court for the Northern District of Ohio.

About our law firm:

The Ohio-based law firm of David P. Meyer & Associates represents individuals in Ohio and throughout the country who have been harmed by investment fraud. All of our cases are handled on a contingency fee basis and we never request a retainer of any kind. Contact us toll-free at 1.866.429.2360 for more information or complete the online form on the top of this page and we will respond promptly.