Philip Elvin Riehl, Ponzi Scheme, Pennsylvania 2020

Philadelphia, PA - In a shocking turn of events, Berks County accountant Philip Elvin Riehl, 68, was sentenced to 120 months in prison, three years supervised release, and ordered to pay $59,688,297 in restitution and $59,688,297 in forfeiture by United States District Judge Edward G. Smith for orchestrating a massive Ponzi scheme that targeted members of the Mennonite and Amish religious communities in Pennsylvania and elsewhere.

Riehl, a Berks County-based accountant, fraudulently solicited tens of millions of dollars in investments from his accounting clients and others, mostly members of the Mennonite or Amish communities, into an investment program that he operated. The defendant then diverted funds from the program to Trickling Springs Creamery, LLC, a Franklin County-based creamery of which he was the majority owner.

Riehl also fraudulently solicited direct investments in Trickling Springs Creamery. He made material misrepresentations about the safety and security of these investments in his program and about the performance of the program, as well as misrepresentations and omissions about the creamery’s business and financial condition.

Trickling Springs Creamery announced it was ceasing operations in September 2019 and filed a bankruptcy petition in December 2019. Investor losses are estimated to be around $60 million, making this one of the largest Pennsylvania-based Ponzi schemes ever.

The entire scheme is what is commonly referred to as “affinity fraud,” which typically involves investment scams that prey upon members of identifiable groups, such as religious or ethnic communities. These types of scams exploit the trust and friendship that exist in groups of people who share common interests or beliefs.

“The people who invested their money, sometimes their entire life’s savings, with Philip Riehl believed implicitly that they could trust him because he was one of their own,” said U.S. Attorney William M. McSwain. “Riehl preyed upon that trust, swindling them out of tens of millions of dollars in an effort to keep his creamery business from going under. No matter what community they belong to, fraudsters like Riehl must be held accountable under the law for justice to prevail.”

The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Michael J. Rinaldi. The U.S. Attorney’s Office appreciates the assistance of the Pennsylvania Department of Banking and Securities and the U.S. Securities and Exchange Commission.

Riehl pleaded guilty to one count of conspiracy to commit securities fraud and wire fraud, one count of securities fraud, and one count of wire fraud in February 2020.

Riehl’s sentencing brings an end to a long and complex investigation, and serves as a stark reminder of the devastating consequences of Ponzi schemes and affinity fraud. It is a message to would-be perpetrators that they will be held accountable for their actions and face the full force of the law.

The U.S. Attorney’s Office will continue to work tirelessly to protect the public from these types of scams and to bring perpetrators to justice.

Mandatory facts:

Defendant/respondent: Philip Elvin Riehl

Criminal charges: One count of conspiracy to commit securities fraud and wire fraud, one count of securities fraud, and one count of wire fraud

City and state: Philadelphia, PA

Date: February 2020

Sentence: 120 months in prison, three years supervised release, $59,688,297 in restitution and $59,688,297 in forfeiture

Dollar amounts: $59,688,297 in restitution and $59,688,297 in forfeiture

Source: https://www.justice.gov/usao-edpa/pr/berks-county-accountant-sentenced-ten-years-prison-one-largest-pennsylvania-based-ponzi