It turns out Delaware County has its own version of Bernard Madoff.
Madoff of course is the New York financial wizard whom authorities allege actually was the architect of a $50 billion fraud.
Bernard Madoff, meet Joseph S. Forte.
The federal Securities and Exchange Commission yesterday filed civil charges against the 53-year-old Broomall investment manager, painting the picture of a swindler who ripped off friends and clients for years. The feds believe Forte ran a $50 million Ponzi scheme. They claim he accepted funds from a wide array of people and local institutions, all of whom believed they were getting a very good bang for their buck. Then it all blew up in their face.
Apparently in the wake of the Madoff scandal, one local investor began to question Forte’s actions. That’s when the alleged scam started to unravel.
It was laid bare yesterday, when the SEC and the federal Commodities Futures Trading Commission painted an ugly picture of a financial con game.
The feds allege a classic Ponzi ruse, with Forte shuffling large amounts of money from investors to pay off others. They believe that amounted to somewhere in the neighborhood of $15 to $20 million. Nice neighorhood.
Of course along the way, they also claim he was helping himself to the good life – with other people’s money. They claim he took as much as $10 to $12 million for himself.
On Sept. 30 Forte reported to his investors that the fund’s value was more than $154 million. Actually, the balance in his accounts stood at $146,814, according to the SEC.
Among his victims are some very prominent local people and investors, including the Hooper Foundation, named for Main Line stalwarts Thornton D. and Elizabeth S. Hooper of Radnor. Their foundation donated money to places like the Independence Seaport Museum, Bryn Mawr Hospital, and even Cardinal O’Hara High School in Marple. The foundation was believed to have had as much as $15.2 million invested with Forte. Hill Top Preparatory School in Rosemont was believed to have almost $1.5 million invested with the man who ran the business out of his Broomall home.
I’m left with the same question I had in the wake of the Madoff affair. Namely, how can this happen? How can so many people allow themselves to be taken in? And how can it go on for so long? The SEC filings indicate Forte apparently had been doing this for years.
Forte was not registered with the SEC. He apparently admitted the whole thing to the feds.
Now I guess the question is why? Why did he do it, and what did he do with the money?
And how long is it going to take the friends and family that made up his client list to put their lives back together again.
Madoff of course is the New York financial wizard whom authorities allege actually was the architect of a $50 billion fraud.
Bernard Madoff, meet Joseph S. Forte.
The federal Securities and Exchange Commission yesterday filed civil charges against the 53-year-old Broomall investment manager, painting the picture of a swindler who ripped off friends and clients for years. The feds believe Forte ran a $50 million Ponzi scheme. They claim he accepted funds from a wide array of people and local institutions, all of whom believed they were getting a very good bang for their buck. Then it all blew up in their face.
Apparently in the wake of the Madoff scandal, one local investor began to question Forte’s actions. That’s when the alleged scam started to unravel.
It was laid bare yesterday, when the SEC and the federal Commodities Futures Trading Commission painted an ugly picture of a financial con game.
The feds allege a classic Ponzi ruse, with Forte shuffling large amounts of money from investors to pay off others. They believe that amounted to somewhere in the neighborhood of $15 to $20 million. Nice neighorhood.
Of course along the way, they also claim he was helping himself to the good life – with other people’s money. They claim he took as much as $10 to $12 million for himself.
On Sept. 30 Forte reported to his investors that the fund’s value was more than $154 million. Actually, the balance in his accounts stood at $146,814, according to the SEC.
Among his victims are some very prominent local people and investors, including the Hooper Foundation, named for Main Line stalwarts Thornton D. and Elizabeth S. Hooper of Radnor. Their foundation donated money to places like the Independence Seaport Museum, Bryn Mawr Hospital, and even Cardinal O’Hara High School in Marple. The foundation was believed to have had as much as $15.2 million invested with Forte. Hill Top Preparatory School in Rosemont was believed to have almost $1.5 million invested with the man who ran the business out of his Broomall home.
I’m left with the same question I had in the wake of the Madoff affair. Namely, how can this happen? How can so many people allow themselves to be taken in? And how can it go on for so long? The SEC filings indicate Forte apparently had been doing this for years.
Forte was not registered with the SEC. He apparently admitted the whole thing to the feds.
Now I guess the question is why? Why did he do it, and what did he do with the money?
And how long is it going to take the friends and family that made up his client list to put their lives back together again.
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