The SEC has charged a Philadelphia-area investment fund manager and his firm with conducting a multi-million Ponzi scheme, and has obtained an emergency court order freezing their assets. [C-I Note: The SEC couldn't wait until after the Eagles-Giants playoff game this Sunday?]
Joseph S. Forte of Broomall, PA, fraudulently obtained an estimated $50M from as many as 80 investors through the sale of securities in the form of partnership interests in his firm, Joseph Forte, L.P. Forte allegedly told investors the funds would be used to trade securities futures contracts, including S&P 500 stock index futures. He consistently lost money in the limited trading he did and withdrew millions in fees for personal use, and for repaying other investors. This Ponzi scheme ran since at least 1996 and Forte was never registered.
From 1995 through September 2008, Forte reported annual returns ranging from 18.52% to 37.96%. In reality, for 2008, the account had net trading losses of $3.3M. [SEC PR 9-5, 1/8]
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