Innovation Update
Philadelphia-Area Man Charged in $50M Ponzi Scheme
The Associated Press
01/08/09 - 01:49 PM EST
PHILADELPHIA -- A suburban Philadelphia investment manager has been charged by federal authorities with running an investment scheme that swindled an estimated $50 million from as many as 80 investors.
The Securities and Exchange Commission said Thursday Joseph S. Forte, of Broomall, Pa., told investors that he put their funds in an account to trade S&P 500 stock index futures, among other things.
Authorities say Forte reported investment gains, but consistently lost money.
They also say he withdrew millions for his personal use and to repay other investors.
Forte is charged with fraud and related counts. A message left for him by The Associated Press wasn't returned.
In the wake of the discovery of Bernard Madoff's $50 billion Ponzi scheme, similar fraudulent activity has come to light around the country.