Watchdogs unveil $50M Ponzi scheme

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.