Thursday, the SEC charged a Philadelphian investment manager - Joseph Forte, 53 - saying he was running a $50 million Ponzi scheme - over a period of about a decade.

The Commodities Futures Trading Commission (CFTC), who’s mission statement makes them responsible for protecting futures investors from fraudulent behavior, also filed charges against Joseph Forte for allegedly selling limited partnerships for his Philadelphian Ponzi scheme claiming their money would be invested in futures contracts for Standards and Poor’s 500 index securities.

“Always get as much information as you can about a firm or individual’s track record and verify that information–even if you know the people involved or they are recommended by friends or relatives,” the CFTC’s report says; going on to discuss Forte’s lack of success, “In reality, however, Forte was neither successfully trading nor making an effort to do so. When trading, Forte purportedly sustained net losses of at least $3 million trading almost exclusively the S&P 500 futures contract on behalf of the pool. However, during a 34-month period from 2004 into 2007, Forte purportedly conducted little to no trading at all. ”

“As alleged in our complaint, Forte engaged in lies, deception and rapacious behavior at the expense of innocent investors, many of whom considered themselves his friends and close acquaintances,” said Daniel Hawke, in the SEC’s report. “Using other people’s money, Forte promised and reported outrageous returns over more than a 10-year period, and because of his relationships with investors was able to lull them into trusting him with their funds.”

Also released Thursday by the SEC was a second Ponzi scheme worth about $20 million U.S., run by Richard Piccoli, who offered term certifications guaranteeing just over 7 per cent annually. Prosecutors in the case explain that Piccoli released detailed documents to his potential investors explaining the acclaimed investment procedure - involving real estate purchases.

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