A federal judge in Philadelphia denied a motion by Malvern Preparatory School to dismiss a lawsuit seeking to recover $1.1 million allegedly transferred to the school through a fraudulent Broomall investment partnership run by Joseph S. Forte, who is serving a 15-year prison term.
Malvern Prep had argued, among other things, that the receiver trying to recover money for 84 Forte investors who lost $34.8 million filed her lawsuit too late and did not have standing to bring the claim.
Judge Paul S. Diamond wrote in a memorandum released Wednesday: "Some of these arguments border on the frivolous; all are meritless."
In a separate development in another local Ponzi scheme, Tony Young, a Chester County investment manager who is accused of defrauding investors of $25 million, was scheduled to plead guilty on July 20, according to a court filing. - Harold Brubaker