Malvern Preparatory School will return $700,000 in donations received from a man who pleaded guilty to bilking investors out of $35 million in a Ponzi scheme.
The private school will pay the money to a court-appointed receiver trying to recoup losses by the victims of gym owner-turned-investment fund manager Joseph Forte. A federal judge approved the agreement on Thursday.
Forte is serving 15 years in prison after pleading guilty to four fraud and money laundering counts. He had previously served as a Malvern Prep trustee and volunteer strength coach who pledged $1 million for a fitness center at the school.
The court is still trying to recover nearly $1.5 million paid to four other schools.
Copyright AP - Associated Press
