Joseph S. Forte
Encyclopedia
Joseph S. Forte of Broomall, Pennsylvania
operated a Ponzi scheme
that cost investors $50 million. He reportedly signed a confession with the United States Postal Inspection Service
.
with the help of the Securities and Exchange Commission.
Forte's assets were frozen by the court.
Forte allegedly confessed to spending $10–12 million on himself, while using $15–20 million to pay off other investors. The rest may have been lost in trading in futures contracts on the S&P 500
index, foreign currencies, or metals. According to the SEC, Forte reported to his investors that his fund's value was over $154 million, while the actual balance was $146,814.
In late December 2008, he turned himself in to authorities. While the timing is coincidental with the Ponzi scheme of Bernard Madoff
, there is no apparent connection.
On June 5, 2009, Forte pled guilty to wire fraud, bank fraud, mail fraud, and money laundering for his role in his Ponzi scheme.
On November 24, 2009, Forte was sentenced to 15 years in prison.
Broomall, Pennsylvania
Broomall is a census-designated place in Delaware County, Pennsylvania, United States. The population was 11,046 at the 2000 census. The community was named after John Martin Broomall, a 19th century U.S...
operated a Ponzi scheme
Ponzi scheme
A Ponzi scheme is a fraudulent investment operation that pays returns to its investors from their own money or the money paid by subsequent investors, rather than from any actual profit earned by the individual or organization running the operation...
that cost investors $50 million. He reportedly signed a confession with the United States Postal Inspection Service
United States Postal Inspection Service
The United States Postal Inspection Service is the law enforcement arm of the United States Postal Service. Its jurisdiction is defined as "crimes that may adversely affect or fraudulently use the U.S...
.
Biography
The Ponzi scheme operated from at least February 1995. Up to 80 investors are involved. Civil charges were filed in federal court in Philadelphia on January 7, 2009 by the Commodity Futures Trading CommissionCommodity Futures Trading Commission
The U.S. Commodity Futures Trading Commission is an independent agency of the United States government that regulates futures and option markets....
with the help of the Securities and Exchange Commission.
Forte's assets were frozen by the court.
Forte allegedly confessed to spending $10–12 million on himself, while using $15–20 million to pay off other investors. The rest may have been lost in trading in futures contracts on the S&P 500
S&P 500
The S&P 500 is a free-float capitalization-weighted index published since 1957 of the prices of 500 large-cap common stocks actively traded in the United States. The stocks included in the S&P 500 are those of large publicly held companies that trade on either of the two largest American stock...
index, foreign currencies, or metals. According to the SEC, Forte reported to his investors that his fund's value was over $154 million, while the actual balance was $146,814.
In late December 2008, he turned himself in to authorities. While the timing is coincidental with the Ponzi scheme of Bernard Madoff
Bernard Madoff
Bernard Lawrence "Bernie" Madoff is a former American businessman, stockbroker, investment advisor, and financier. He is the former non-executive chairman of the NASDAQ stock market, and the admitted operator of a Ponzi scheme that is considered to be the largest financial fraud in U.S...
, there is no apparent connection.
On June 5, 2009, Forte pled guilty to wire fraud, bank fraud, mail fraud, and money laundering for his role in his Ponzi scheme.
On November 24, 2009, Forte was sentenced to 15 years in prison.