Monday, February 8, 2016

Forte admits to $80M Ponzi scheme

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Joseph Forte has pleaded guilty to operating an $80 million Ponzi scheme.  He is scheduled to be sentenced Oct. 2.
Joseph Forte has pleaded guilty to operating an $80 million Ponzi scheme. He is scheduled to be sentenced Oct. 2. Matt Rourke / AP

PHILADELPHIA - A suburban Philadelphia fund manager has pleaded guilty to operating an $80 million Ponzi scheme.

Prosecutors say 53-year-old Joseph S. Forte lured investors by promising returns ranging from 18 to 38 percent - and pledging they would suffer no losses.

But losses are exactly what happened over time as Forte paid himself millions, bought a Jersey Shore house in Sea Isle, and donated more than $1 million to charity.

Investigators say he blew through more than $20 million from 1996 to 2008. Forte himself says all the money is gone.

More coverage
  • A workout in court over Ponzi-scheme gift
  • Malvern Prep loses bid involving Forte fraud
  • Is all $150M gone?
  • SEC: Forte says he has no money to repay anyone
  • PhillyDeals: Radnor firm seeks to reclaim clients' funds
  • Forte barred from futures trading
  • Man says he bilked investors of $20M
  • Forte admits to $80M Ponzi scheme
  • Investment manager charged with fraud
  • Criminal charges filed in Forte alleged fraud
  • Forte court documents
  • Criminal information filed against Forte
  • Forte affidavit to support arrest warrant (.pdf)
  • Forte criminal complaint (.pdf)
  • Schnable indictment
  • The Forte case SEC complaint (.pdf)
  • Forte complaint by Commodity Futures Trading Commission (.pdf)
  • Forte order by Commodity Futures Trading Commission (.pdf)
  • Forte, a 1978 graduate of Villanova University, lives in Broomall with his wife and four children.

    He is scheduled to be sentenced Oct. 2 on three federal fraud counts and money laundering.

     

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