Watchdogs unveil $50M Ponzi scheme

JAN 09, 2009
By  Bloomberg
The SEC and U.S. Commodity Futures Trading Commission have filed emergency actions to halt an estimated $50 million Ponzi scheme that a Pennsylvania securities firm conducted. The watchdog agencies allege that Joseph S. Forte obtained $50 million from as many as 80 different investors going back to 1995 through the sale of limited partnership interests in Boomall, Pa.-based Forte LP, where he was general partner. Paul S. Diamond, a U.S. District Judge for the Eastern District of Pennsylvania, issued an order freezing Mr. Forte’s assets. Mr. Forte consented to the judge’s orders without admitting or denying the allegations, though no criminal charges have been filed. From February 1995 through Sept. 30, annual returns allegedly were reported to range from 18.52% to 37.96%. However, Forte was losing money, according to the Securities and Exchange Commission.

Latest News

Health savings account contributions, investments can be boosted by one key thing
Health savings account contributions, investments can be boosted by one key thing

New research also reveals that one third of HSA holders withdrew more than they put in.

Maryland bars advisor over charging excessive fees to clients
Maryland bars advisor over charging excessive fees to clients

Blue Anchor Capital Management and Pickett also purchased “highly aggressive and volatile” securities, according to the order.

Wave of SEC appointments signals regulatory shift with implications for financial advisors
Wave of SEC appointments signals regulatory shift with implications for financial advisors

Reshuffle provides strong indication of where the regulator's priorities now lie.

US insurers want to take a larger slice of the retirement market through the RIA channel
US insurers want to take a larger slice of the retirement market through the RIA channel

Goldman Sachs Asset Management report reveals sharpened focus on annuities.

Why DA Davidson's wealth vice chairman still follows his dad's investment advice
Why DA Davidson's wealth vice chairman still follows his dad's investment advice

Ahead of Father's Day, InvestmentNews speaks with Andrew Crowell.

SPONSORED RILAs bring stability, growth during volatile markets

Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today’s choppy market waters, says Myles Lambert, Brighthouse Financial.

SPONSORED Beyond the dashboard: Making wealth tech human

How intelliflo aims to solve advisors' top tech headaches—without sacrificing the personal touch clients crave