The SEC has accused a Philadelphia-area investment manager of a Ponzi scheme that swindled some $50 million from as many as 80 investors. Investigators say Joseph Forte admits he used as much as $20 million in investor funds to repay other clients and withdrew up to $12 million in so-called fees for himself. Account statements given to Forte's investors show he actually pocketed $28 million. The news is the latest investor fraud to come to light since Bernard Madoff's alleged $50 billion Ponzi scheme unraveled.
SEC Charges Pa. Investment Manager in $50 Million Ponzi Scheme
The Associated Press
January 9, 2009