Goshen man ordered to pay $2.3M in fraud case sentencing
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A Goshen man has been sentenced to more than eight years in prison and ordered to pay more than $2.3 million in restitution after officials say he used money entrusted to his real estate investment firm by members of the Amish and Mennonite community to pay for, among other things, a spiritual advisor and pontoon boat.
Earl Miller, 44, was sentenced Thursday after a federal jury found him guilty in May 2022 of five counts of wire fraud and one count of securities fraud. The same jury acquitted Miller of one count each of wire fraud and bankruptcy fraud.
“The essence of this defendant’s crime is that he convinced people to invest in businesses by telling them a lie: that their money would be invested one way, while he used those funds in other ways,” U.S. Attorney Clifford Johnson said in a news release. “Mr. Miller’s crimes are particularly offensive because trial evidence showed that he perpetrated his fraud against Amish and Mennonite community members. This case shows that my office will vigorously prosecute affinity frauds.”
Officials say a bankruptcy trustee first recovered some improper payments after Miller filed for bankruptcy relief in 2016 on behalf of 11 entities related to his investment firm, 5 Star. Miller had become sole owner of the firm in July 2014, according to court documents.
Investigators believe that between July 2014 and January 2016, Miller used more than $4.5 million of his clients’ money for reasons not disclosed to them. They say Miller told clients he would invest their money in real estate but instead paid interest to other investors or made other non-disclosed purchases. About 80% of those affect were Amish or Mennonite, according to the news release.
The bankruptcy trustee, upon discovery of improper payments, negotiated an agreement in July 2018 with Miller to pay $600,000 to bankruptcy estates. However, by April 2021, officials say Miller had only paid about $36,000.
Miller was sentenced Thursday by U.S. District Court Senior Judge Jon E. DeGuilio after a five-day jury trail in May 2022. His sentence includes 97 months in prison with a year of supervised release. He was also ordered to pay a total $2,313,873.28 in restitution.
“Today’s sentencing should serve as a strong reminder that there are consequences for this illegal behavior and those who choose fraud will be held accountable,” FBI Indianapolis Special Agent in Charge Herbert J. Stapleton said in the release shared Thursday. “The FBI and our partners will continue to be relentless in our pursuit of those engaging in criminal behavior.”