Wednesday, January 21, 2009
Another day, another Ponzi scheme
With people unwilling to invest, the schemes can not attract new money to pay the old investors and it all comes tumbling down.
Philadelphia-area fund manager Joseph Forte was charged by U.S. prosecutors with mail fraud over allegations that he ran a $50 million Ponzi scheme that bilked investors including a charity, church and private school.It will be a few years before the new ones start up.
Forte, 53, duped around 80 investors about his fund’s investment returns between 1996 and 2008, Acting U.S. Attorney Laurie Magid in Philadelphia said in an e-mailed statement today. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine, plus restitution to victims.
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