Prosecutors: Owner Of Shuttered Berks County Organic Dairy Ran $60 Million Fraud That Preyed On Amish, Mennonite Investors
READING, Pa. (CBS/AP) — The owner of an award-winning organic dairy in Berks County that abruptly closed its doors last fall is accused of milking investors to the tune of nearly $60 million. Philip Riehl, the majority owner of Trickling Springs Creamery, ran a long-running fraud scheme that preyed on hundreds of Amish and Mennonite investors, according to federal prosecutors.
Thank you to AUSA Michael Rinaldi and @FBIPhiladelphia for joining me today at a press conference at the Federal Courthouse in Reading, PA to announce the federal criminal charges against Philip Elvin Riehl. pic.twitter.com/7604UGje15
— US Attorney William M. McSwain (@USAttyMcSwain) January 31, 2020
Riehl was charged this week with securities and wire fraud. A message seeking comment was left with his attorney Friday.
The Chambersburg-based dairy opened in 2001 and produced milk, cream, butter, ice cream, yogurt and cheese. The dairy's products were sold up and down the East Coast.
Court documents said Riehl lured investors to a fund that made most of its loans to Trickling Spring and paid off older investors with money from new investors. As of December, investors had lost $59.7 million through the Riehl Investment Program and Trickling Springs, according to court documents.
"These investors were looking for honesty and integrity when deciding where and with whom to invest their money," said U.S. Attorney McSwain. "According to the Information, Riehl presented himself as a trusted member of their religious community, only to betray that trust and swindle them out of tens of millions of dollars. It is only natural for members of a tightly knit community to want to take care of one another, but Riehl did not care about anyone but himself. Fraudsters must be held accountable under the law – no matter what community they belong to – for justice to prevail."
Trickling Springs closed its plant and retail location in Chambersburg last fall, writing on its Facebook page: "We would like to express appreciation to our wonderful employees for their dedication and hard work as well as the farmers who stood beside us and supported our mission. We are especially grateful to the community who has supported and loved our products throughout the past 18 years."
The dairy filed for bankruptcy in December.
Pennsylvania banking regulators previously filed a civil complaint against the dairy, Riehl and its other owners, alleging 370 violations of state securities law.
Riehl and the other defendants have been excommunicated by the Mennonite church, The Washington Post reported last month.
(© Copyright 2020 CBS Broadcasting Inc. All Rights Reserved. The Associated Press contributed to this report.)