INDIANAPOLIS –Secretary of State Diego Morales announces the sentencing of Earl D. Miller, of Goshen, in a Securities Division enforcement case.
Miller was sentenced to eight years in federal prison on seven counts involving wire fraud and securities fraud after guilty verdicts were returned after a five-day jury trial held in May 2022.
Approximately 80% of the defrauded investors in 5 Star were Amish or Mennonite.
In 2013, the Indiana Securities Division, under the Secretary of State’s Office, received a complaint regarding Miller. Miller was the sole owner of “5 Star”, a real estate investment firm. Through 5 Star and numerous related entities, Miller obtained funds from multiple investors by fraudulently telling them he would invest their funds in real estate developments. Instead, Miller would use their funds in other ways, such as paying interest to other investors, investments in non-disclosed entities, payments to a spiritual advisor, and buying a pontoon boat. Between July 2014 and January 2016, Miller made over $4.5 million worth of payments from 5 Star accounts to entities not disclosed or approved by investors.
Miller was sentenced to 97 months in federal prison followed by one year of supervised release. In addition, Miller was ordered to pay $2,313,873.28 in restitution to the victims.
“This sentencing serves as a reminder that those who perpetrate these types of Ponzi schemes and other investment frauds will be held accountable. Our Securities Division will continue to investigate frauds and protect Hoosier investors,” said Indiana Secretary of State Diego Morales.
Indiana Securities Commissioner Marie Castetter noted the collaboration between law enforcement partners who investigated this matter, including the Federal Bureau of Investigation, and the Northern Indiana Bankruptcy Fraud Working Group of the United States Trustee’s Region Ten Office. The case was prosecuted in the United States District Court of Northern Indiana. Hoosiers with questions or concerns about investments or financial services providers can obtain information or file a complaint with the Indiana Securities Division at 317-232-6681.
