Nov. 30—SOUTH BEND — A Goshen man is facing years in prison in a federal fraud case.
Earl D. Miller, 44, was sentenced Thursday by United States District Court Senior Judge Jon E. DeGuilio on guilty verdicts returned by a federal jury after a five-day jury trial in May 2022, announced United States Attorney Clifford D. Johnson in a news release.
On May 13, 2022 Miller was found guilty by the federal trial jury of five counts of wire fraud and one count of securities fraud. That same jury acquitted Miller of one count of wire fraud and one count of bankruptcy fraud.
Miller was sentenced to 97 months in prison, 1 year of supervised release and ordered to pay $2,313,873.28 in restitution.
According to documents in the case, Miller became the sole owner of "5 Star", a real estate investment firm, in July of 2014. Through 5 Star and it its numerous related entities, Miller obtained funds from multiple investors' by fraudulently telling them he would invest their funds in certain real estate investments but then actually using their funds in other ways, such as paying interest to other investors, investing in non-disclosed entities, paying for a spiritual advisor and a pontoon boat, the release stated.
From July of 2014 to January of 2016, Miller made over $4.5 million worth of payments from 5 Star accounts to entities not disclosed or approved by investors. Approximately 80% of investors in 5 Star were Amish or Mennonite.
On Jan. 25, 2016 Miller filed petitions for bankruptcy relief on behalf of eleven 5 Star related business entities. In these bankruptcy proceedings, the United States Trustee appointed a chapter 11 trustee to administer the cases, and the chapter 11 trustee was able to recover some improper payments Miller had made and, on July 2, 2018, negotiate an agreement with Miller to pay $600,000 to the bankruptcy estates. As of April 2021, he had only paid approximately $36,000 of the agreed amount to the bankruptcy estates.
"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," Johnson said. "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."
The U.S. Security Exchange Commission along with the Fairfax County Virginia and Salinas California Police Departments also assisted in the investigation. The case was prosecuted by Assistant United States Attorneys John M. Maciejczyk and Jerome W. McKeever.