Thursday, July 19, 2012

Why Is The SEC Investigating The Amish?

"The SEC announced a deferred prosecution agreement Wednesday with the Amish Helping Fund, a not-for-profit organization that provides home loans to Amish families in Ohio.The Amish financiers allegedly misled investors by failing to update the fund's offering memorandum, which was drafted when it was founded by a group of 'elders' in 1995."  You can read more on CNN HERE.

The Amish? They famously drive a horse and buggy rather than cars, but they have an investment fund?

Intrigued, I went to the Wikipedia entry on the Amish and found this. "Under their beliefs and traditions, the Amish do not agree with the idea of social security benefits and have a religious objection to insurance. On this basis, the United States Internal Revenue Service agreed in 1961 that they did not need to pay Social Security related taxes. In 1965, this policy was codified into law."

So the Amish have a religious objection to insurance and Social Security (as well as cars), but they have an investment fund with a prospectus?

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