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SEC v. Joseph S. Forte, et al. Case No. 09-cv-0063-PD (E.D. Pa.)

Oct. 14, 2022

On January 7, 2009, the Commission filed a an Emergency Motion for an Order by Consent of Preliminary Injunction, Freezing Assets, and Granting Other Relief against Joseph S. Forte (“Forte”) and Joseph Forte, L.P. (“Forte LP”) (collectively, the “Defendants”), which the Court granted. the Commission simultaneously filed a Complaint alleging that, beginning in February 1995, through the date of filing the Complaint, Forte operated a Ponzi scheme in which he fraudulently obtained approximately $50 million from roughly 80 investors through the sale of securities in the form of limited partnership interests in Forte, LP. In particular, the Complaint alleged that Forte misrepresented the use of the funds and used some investors’ money to make Ponzi-like payments to other investors and to pay personal expenses. See Complaint.

On March 17, 2009, the Commission filed an unopposed motion for the appointment of a receiver (the “Receiver”), which the Court granted on March 30, 2009. On September 12, 2018, upon consideration of the SEC’s motion, the Court entered final judgment against the Defendants. See the Court’s Order.

By Order entered January 2, 2020, the Court discharged the Receiver but left the Receivership Estate open to receive additional payments, directed all additional payments to be made to the Commission, and ordered the Commission to hold the funds pending approval by the Court of a plan to make further distributions. See the Court Order with Exhibit A.

By Order entered on March 9, 2022, the Court appointed Miller Kaplan Arase LLP (“Miller Kaplan”) as Tax Administrator for the Distribution Fund and authorized payment of tax obligations and administrative fees and expenses from the Distribution Fund without further Court Order. See the Court’s Order.

On March 10, 2023, the Commission filed a Motion to Approve a Seventh Distribution.  See the Motion with accompanying papers.  

On April 12, 2023, the Court issued an Order approving a Seventh Distribution. See the Court’s Order.

For more information, please contact the Commission:

Office of Distributions

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