Tuesday, December 1, 2009

Update: Former Pennsylvania Fund Manager Gets 15 Years In $35 Million Ponzi Scheme Case

Joseph S. Forte, 53, of Broomall, Pennsylvania and a former Philadelphia-based fund manager, has been sentenced to 15 years in prison for operating a Ponzi-type investment fraud scheme that bilked investors out of some $35 million. According to the original SEC complaint, Forte's scheme - luring investors in fraudulent futures contracts via his investment vehicle, Joseph Forte, L.P. , started in about 1995. Forte allegedly promised investors returns ranging from 18 to 38 percent per year with little or no risk. In all, he took in a reported $80 million. He donated to charities and funded private schools his kids attended. Forte also bought a beach house in New Jersey and by some accounts, lived a lavish lifestyle. Forte pleaded guilty last June to felony charges that included wire fraud, mail fraud, bank fraud and money laundering.

Read FraudTalk's original post on this story here.

Read the story here and here.

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