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June 8, 2009, 01:29 PM ET
Fund Manager Pleads Guilty to $80-Million Fraud
A Pennsylvania investment manager whose clients included a family foundation pleaded guilty last week to running an $80-million Ponzi scheme, according to the Associated Press.
Joseph S. Forte, of Broomall, Pa., says he promised investors returns of 18 to 38 percent and that they would never lose money.
Among the more than 70 clients he admitting defrauding was the Thornton D. and Elizabeth S. Hooper Foundation, which was created in 1980 and supported churches, schools, and other charitable organizations. Mr. Forte himself donated more than $1-million to charity over the years, notably to Malvern Preparatory School, in Philadelphia, serving on the school’s board.
Mr. Forte, who pleaded guilty to three fraud counts and one count of money laundering, is required to pay more than $20-million in restitution, according to court documents.
He will be sentenced in October and faces 11 to 14 years in prison. He did not comment to the Associated Press about his case.
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