Fund manager charged over 14-year-old Ponzi scheme
SEC supervisors charge a fund manager with a $50 million Ponzi scheme dating back to 1995
The latest fraud comes only a month after news broke of Bernard Madoff's $50 billion Ponzi scheme, which had operated since 2006 without regulatory oversight. The SEC is already in the Congressional dock over the Madoff debacle.
The regulator claims the investment fund manager Joseph P Forte scammed 80 investors with the Ponzi - or Pyramid - scheme. The SEC has now secured an emergency court order to freeze Forte's assets.
SEC spokesman Daniel Hawke said: "As alleged in our complaint, Forte engaged in lies, deception and rapacious behaviour at the expense of innocent investors, many of whom considered themselves his friends and close acquaintances."
Forte had reported 37.96% returns, but between January 1998 and October 2008 made trading losses of $3.3 million, according to SEC-filed papers. During that time, the SEC alleges, Forte secreted millions more dollars in "fees" into his personal accounts.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@risk.net or view our subscription options here: http://subscriptions.risk.net/subscribe
You are currently unable to print this content. Please contact info@risk.net to find out more.
You are currently unable to copy this content. Please contact info@risk.net to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@risk.net
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@risk.net
More on Regulation
Imminent US shake-up of LCR slated to include discount window
Adding Fed liquidity facility to bank regulation may help overcome stigma, raise lending capacity
French regulator wants permanent changes to EU’s output floor
Push for capital relief faces resistance from supervisors in Finland and the Netherlands
Council plans take Aquis, BME out of Esma oversight
German push to exempt Deutsche Börse catches three others, according to sources
Why watering down resolution plans is a bad idea
Bank failures are inevitable; banking crises are not
BIS’s Hernández de Cos on AI, non-bank risk and tokenisation
General manager talks about how the BIS is navigating a complex global environment
‘European SEC’ no silver bullet for growth
EU policymakers hope a single, centralised supervisor will help rev up Europe’s economy but critics are mustering
Permanent FRTB reforms seen as vital for IMA adoption
Temporary relief granted in June has done little to encourage internal model use in Europe
How to ensure the next Credit Suisse or SVB fails ‘well’
Regulators are planning changes to resolution rules after criticism that living wills were ignored in previous bank collapses
