Amish and Mennonite Investors lose more than $50 million in Conestoga Log Cabin Leasing
Editor’s disclaimer: NewsLanc has not investigated the alleged incidents reported below and thus cannot attest to the accuracy of the below. The source has been reliable in the past..
“John Sensenig, primarily through a small ad in a Pennsylvania Dutch German language newspaper, was able to raise in excess of $50 million dollars from over 1,000 Amish and Mennonite investors. Sensenig was even able to persuade some Bishops to help direct the funds of their Amish constituents to his company. These investors were promised attractive rates of return for demand and and short-term time deposits placed with Conestoga Log Cabin Leasing.
Unfortunately, contrary to what most of these unsophisticated investors understood, the investments that Mr. Sensenig was putting the money into were of a very high risk: land development and new product development investment. Sensenig operated many different businesses, from trailer parks to rubber granulators to fence post protectors, to name a few. None of them appear to have achieved any degree of success or, in the case of the development projects, completion.
In 2005, as some investors asked for the return of their funds, and Mr. Sensenig refused, there was a complaint made to the Pennsylvania Securities Commission. As a result, Sensenig was issued a cease and desist order forbidding him and his companies from raising any additional funds unless and until he properly registered his companies. Investors were given the opportunity to withdraw. Regrettably, only a handful of investors responded. Records show that Sensenig’s Post Saver company continued to advertise for funds by including an unregistered offer in customer’s quarterly statements. No further action was taken by the PA Securities Commission.
Sensenig was smart. By dealing with mostly Amish investors, he was virtually able to guarantee that no one would take legal action against him. One Amish investor did initiate action via a complaint in Federal court and this investor was inundated with letters from other Amish investors, from across the country, pleading with him to give Mr. Sensenig more time. How did they know this particular investor’s name and address? Sensenig had printed it on his customer’s quarterly statements. Fortunately, this particular investor continued to press Sensenig and was able to recover his entire investment.
Sensenig’s other investors were not so fortunate. He was able to convince these investors that once the business, now to be known as Community Pioneers, was properly registered with the US Securities and Exchange Commission, that they would be able to start drawing out their funds. The quarterly statements indicated that the registration process was difficult and taking much longer than anticipated. Sensenig pleaded with investors to not get lawyers involved as this simply raised his costs and hurt the other investors.
In late 2009, in a statement from Mr. Sensenig, he explained that a group of Mennonite businessmen from his particular Mennonite conference, under pressure from the church, took control of Conestoga Log Cabin Leasing, “seized a tractor trailer load of records” and hired accountants and attorneys to pour over the records. According to Sensenig, this committee is comprised of Alan N. Hoover, Leon B. Martin and Ervin M. Zimmerman. Sensenig stated that they are looking for fraud, but he confidently says, “There isn’t any.” Attempts to reach Leon Martin at his AB Martin Roofing business in Ephrata were unsuccessful.
People close to the committee indicate that there is little to no hope of recovering any funds for investors. The losses likely will total in excess of $50 million dollars. Some of the personal stories are devastating:
* The 80 + year old Amish farmer who sold his farm for in excess of $1 million dollars, and lost it all, who now depends on the charity of his family and church to bring him coal and food.
*The young couple who placed all their savings, and lost them all, into Conestoga Log Cabin Leasing as they waited to find the right piece of property to buy.
*The Amish family whose husband and father was severely injured when a team of horses moved and a mower deck dropped on his head. They were convinced to place all their savings into Sensenig’s company so they could benefit from the interest he would generate for them. Those funds are gone forever and this family now struggles to get by.
For his part, Sensenig still holds onto his vision and states that his ‘personal goal is to finish existing project one by one over many years, if given the opportunity. The projects have been on hold and unfinished projects have no value except for the steel.'”
