PHILADELPHIA, PA — On March 13, James LaForte, 48, of New York, was sentenced to 11½ years in prison for his role in a sprawling criminal enterprise orchestrated by Par Funding, a fraudulent investment vehicle operating under Complete Business Solutions Group, Inc. U.S. District Court Judge Mark A. Kearney also ordered LaForte to pay $2.49 million in restitution and serve three years of supervised release, including 12 months of home confinement.
Prosecutors detailed how LaForte, as an “enforcer” within the operation led by his brother, Joseph LaForte, used intimidation and violence to extort merchants and retaliate against individuals cooperating with authorities. His crimes included a violent assault on a Philadelphia receivership attorney overseeing Par Funding’s assets and threats against government witnesses. The fraud scheme, which ran for years, caused an estimated $288 million in losses after accounting for collateral seized by federal authorities.
“Nine years after legalizing medical cannabis for patients, we still have not addressed this fundamental flaw in our law, which could jail someone for driving weeks after taking their medication,” U.S. Attorney David Metcalf noted. He condemned LaForte’s brazen actions, calling the sentence a warning against “violent lawbreaking.”
LaForte pleaded guilty in September 2024 to charges including racketeering conspiracy, securities fraud, and obstruction of justice. His brother, Joseph LaForte, and former Par Funding CFO Joseph Cole Barleta also pleaded guilty to related charges and are awaiting sentencing on March 26 and June 2, 2025, respectively.
This case, described as one of the largest financial frauds in Philadelphia’s history, was investigated by the FBI, IRS Criminal Investigation, and FDIC Office of Inspector General, alongside the SEC. It underscores the widespread impact of white-collar crime and the commitment of authorities to bring justice.
The sentencing of the remaining defendants will mark the completion of a significant chapter in holding accountable those involved in this complex and damaging scheme. Investigators and prosecutors remain focused on ensuring restitution for victims and preventing similar crimes in the future.
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