Joseph S. Forte
{{Short description|American con artist}}
{{About|the Ponzi scheme operator|the basketball player, Joseph X. Forte|Joseph Forte}}
Joseph S. Forte of Broomall, Pennsylvania, is an American con artist who operated a Ponzi scheme that cost investors $50 million. He reportedly signed a confession with the United States Postal Inspection Service.{{cite news
| last =Brubaker | first =Harold | title =SEC: Forte says he has no money to repay anyone
| work =Philadelphia Inquirer | date =January 8, 2009 | url =http://www.philly.com/inquirer/breaking/business_breaking/20090108_Charges_filed_against_Forte_in_Ponzi_scheme.html | accessdate =January 9, 2009 }}
| last =Lynch | first =Sarah N.
| title =New Ponzi Case Pursued
| work =WSJ.Online | date =January 8, 2009 | url =https://www.wsj.com/articles/SB123146543612166835?mod=googlenews_wsj | accessdate =January 9, 2009 }}
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 Commission with the help of the Securities and Exchange Commission.{{cite news|title=CFTC Charges Philadelphia-area Resident with Operating $50 Million Ponzi Scheme |work=CFTC News Release 5594-09 |date=January 8, 2009 |url=http://www.cftc.gov/newsroom/enforcementpressreleases/2009/pr5594-09.html |accessdate=January 9, 2009 |url-status=dead |archiveurl=https://web.archive.org/web/20090114185930/http://www.cftc.gov/newsroom/enforcementpressreleases/2009/pr5594-09.html |archivedate=January 14, 2009 }}{{cite news
| title =SEC Charges Joseph S. Forte for Conducting Multi-Million Dollar Ponzi Scheme
| work =SEC News Release | date =January 8, 2009 | url =https://www.sec.gov/news/press/2009/2009-5.htm | accessdate =January 9, 2009 }}
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 pleaded guilty to wire fraud, bank fraud, mail fraud, and money laundering for his role in his Ponzi scheme.{{cite news |first=Jeff |last=Blumenthal |title=Forte pleads guilty in Ponzi scheme |url=http://www.bizjournals.com/philadelphia/stories/2009/06/01/daily63.html |work=Philadelphia Business Journal |publisher=American City Business Journals |date=June 5, 2009 |accessdate=June 11, 2009}}
On November 24, 2009, Forte was sentenced to 15 years in prison.{{cite news |last=Dale |first=Maryclare |title=UPDATE: Broomall man gets 15 years in $20.5 million Ponzi scheme |work=Delaware County Daily Times |date=November 24, 2009 |url=http://www.delcotimes.com/articles/2009/11/24/news/doc4b0b5a1b464a7603931477.txt |accessdate=July 18, 2010 |archive-date=March 14, 2012 |archive-url=https://web.archive.org/web/20120314220646/http://www.delcotimes.com/articles/2009/11/24/news/doc4b0b5a1b464a7603931477.txt |url-status=dead }}
See also
References
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{{2008 economic crisis}}
{{DEFAULTSORT:Forte, Joseph S.}}
Category:Year of birth missing (living people)
Category:American people convicted of money laundering
Category:American money managers