Another money manager bites the dust. According to Dow Jones Wire, the U.S. Commodity Futures Trading Commission and the Securities and Exchange Commission have brought civil charges against Joseph S. Forte of Pennsylvania, who is accused of running a $50 million Ponzi scheme.
Authorities said Forte, of Broomall, Pa., recently confessed to federal officials after his alleged Ponzi scheme fell apart. It was unclear if criminal charges have been filed. According to the SEC, Forte obtained the $50 million from as many as 80 different investors through the sale of securities in the form of limited partnership interests in his firm, Joseph Forte, L.P. They claim he told the investors he would invest their money into an account that trades in securities futures contracts, including S&P 500 stock index futures.
The CFTC’s complaint, filed in a U.S. district court in Pennsylvania, accuses Forte of solicitation fraud, misappropriation of commodity pool funds, sending customers false account statements, and failing to register as a commodity pool operator. The charges against Forte come at a time when Ponzi schemes are at the center of attention after it was revealed that Bernard L. Madoff, a renowned investor, was allegedly operating a $50 billion Ponzi scheme and managed to evade regulators for at least a decade.
Yep, I hear criminal charges coming soon for Mr. Forte and he will be sent up the river for a long time, when convicted and sentenced. He should be held to the same standard as the common criminal.
To read the SEC’s complaint, CLICK HERE.
Filed under: Commodity Futures Trading Commission, Joseph Forte, Joseph Forte LP, Ponzi scheme, Securities Exchange Commission
Black Political Thought 