Thursday, January 8, 2009

Pennsylvania Fund Manager Accused By SEC Of Running A $50 Million Ponzi Scheme

Joseph S. Forte, 53, of Broomall, Pennsylvania and a Philadelphia-based fund manager, was accused by the SEC today with operating a $50 million Ponzi scheme by paying earlier investors with more recent investor funds. The SEC complaint claims Forte's scheme - luring investors in fraudulent futures contracts via his investment vehicle, Joseph Forte, L.P. , has operated since at least 1995. It further stated that Forte had admitted to that he had been conducting the Ponzi scheme and that he did not have the funds to repay investors. The SEC action ordered a cessation of all operations and freezes all assets connected to Forte's enterprise.

Read the story here and here.

Read the SEC's litigation release here.

Read the SEC's complaint here.

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