PHILADELPHIA, PA — Joseph LaForte, 54, of Philadelphia, Pennsylvania, has been sentenced to 186 months in prison and three years of supervised release, including 12 months of home confinement, for orchestrating a large-scale fraudulent investment scheme through his company, Complete Business Solutions Group Inc., which operated under the name Par Funding. The sentence was handed down on Wednesday, March 26, by United States District Court Judge Mark A. Kearney.
LaForte’s crimes, which spanned years, resulted in significant financial devastation. The court ordered him to forfeit assets, including a private jet and an investment account worth approximately $20 million, and also imposed a $120 million forfeiture money judgment, $314 million in restitution to defrauded investors, and a $50,000 fine.
The court previously determined that Par Funding’s fraudulent activities caused an actual loss of $404 million, later adjusting that figure to $288,395,088 after accounting for collateral seized during the investigation.
A Complex Fraudulent Enterprise
Joseph LaForte, functioning as Par Funding’s president and CEO, led a sophisticated criminal enterprise aimed at deceiving investors and accumulating personal wealth. From 2015 until its unraveling in 2020, Par Funding attracted investors by intentionally misrepresenting key aspects of its operations. This included false claims about the founder’s criminal history, the business’s underwriting processes, the diversity of its merchant cash advance (MCA) portfolio, and its financial performance.
While the company claimed to provide short-term financing to businesses in need, it operated as a Ponzi scheme, constantly relying on new investor funds to remain solvent. Evidence presented in court revealed that Par Funding’s MCA business was unable to generate sufficient income to sustain payments to investors or cover operational costs.
LaForte pocketed over $120 million from the scheme, using the funds to purchase multiple luxury items, including homes, vehicles, artwork, jewelry, and a private jet. He also rewarded co-conspirators such as his brother, James LaForte, and chief financial officer, Joseph Cole Barleta, with multi-million-dollar payouts for their roles in the enterprise.
Violence and Intimidation
In addition to financial fraud, the enterprise relied on extortion and threats to enforce debt collection. Testimony revealed that LaForte and his associates employed violent tactics to intimidate delinquent clients. This included threats of physical harm, such as kidnapping, destruction of property, and even death. One Par Funding customer reported being threatened with having her car bombed and her children abducted if she failed to pay.
Further evidence revealed that LaForte aided and abetted a violent assault on a court-appointed attorney working to oversee Par Funding after it was placed into receivership by the SEC in 2020. His brother, James, who also threatened government witnesses and engaged in extortion, was sentenced earlier this month to 11½ years in prison.
Sentencing and Broader Impact
LaForte pleaded guilty in September 2024 to charges of racketeering conspiracy, securities fraud, tax crimes, perjury, obstruction of justice, and illegal firearm possession. His actions also resulted in over $8 million in federal tax losses and $1.6 million in state tax liabilities after falsely claiming Florida residency to evade Pennsylvania taxes.
“Joe LaForte is a career grifter,” U.S. Attorney David Metcalf stated. “He has spent his adult life lying, cheating, and stealing his way to a lavish lifestyle paid for with other people’s money… He has earned every day of his prison sentence.”
FBI Special Agent in Charge Wayne A. Jacobs also commented on the case, saying, “The FBI and our partners remain unwavering in our commitment to uncover, investigate, and dismantle complex financial fraud schemes — and to pursue justice and restitution for the victims they leave behind.”
The case was investigated by the FBI, IRS Criminal Investigation, and the Federal Deposit Insurance Corporation Office of Inspector General, with assistance from the SEC in Florida. Assistant U.S. Attorneys Matthew Newcomer, Samuel Dalke, and Eric Gill led the prosecution.
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