"Amish Bernie Madoff 'pleads no contest: Monroe Beachy not fight fraud charges

Thursday, October 27, 2011
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Sugarcreek, Ohio (RNS) A reversal agent known as "Bernie Madoff Amish" has decided not to fight federal charges that he defrauded thousands of investors of nearly $ 17 million.

Monroe Beachy, 77, intends to reject the legal advice of his lawyer and plead no contest in an appearance in Youngstown, on Thursday (October 27), defense attorney Gerald Ingram, said in court documents.

"The statement offered the defendant not to compete is the result of religious doctrine / church and not the product of legal analysis," Ingram wrote. "In the opinion of counsel, that reason is premature and not in the best interest of the defendant."

Ingram has asked the U.S. District Judge Benita Pearson to enter instead a plea of ​​not guilty on behalf of Beachy. He said he expects federal prosecutors also oppose a declaration of non-competition, although a spokesman for the U.S. attorney's office said prosecutors are still investigating the issue and are not convinced such a plea would be inappropriate.

No contest pleas are common in state and local courts, but are rare in the federal courts. By pleading not guilty, the defendant does not admit or disputes of a criminal offense. Although not technically a guilty plea, the result is a conviction and usually does not affect the sentence.

The case has caused consternation and embarrassment Beachy members Sugarcreek Amish community, who prefer to solve the problems between them and without the participation of the U.S. system the court.

Beachy only has a grade 10 education, but federal prosecutors say he was capable of more than 20 years to raise an estimated $ 33 million to 2600 investors - many other members of the Amish community.

According to the fraud charges brought last February by the Securities and Exchange Commission, Beachy convinced investors that he had discovered a magic formula to make a profit in the U.S. themhigher government securities that traditional banks can offer.

In fact, prosecutors say, Beachy had established a Ponzi scheme, seeking new investors for $ 16.8 million tomake lost in speculative investments such as risk measures, mutual funds and junk bonds.

The infamous Bernard Madoff used this scheme to deceive investors an estimated $ 18 billion by the time he was captured in 2008. It was the biggest scam investing in U.S. history and received a sentence of 150 years Madoff in prison.

Beachy faces up to 20 years in prison if convicted of fraud.

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