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Joseph LaForte, Securities Fraud, Pennsylvania 2023
A Pennsylvania man has been sentenced to 15 and a half years in prison for defrauding investors and conspiring to defraud the IRS.
Court documents and statements made in court revealed that Joseph LaForte, of Philadelphia, engaged in a scheme to defraud investors using a fraudulent investment vehicle known as Par Funding.
According to the court, LaForte and his co-conspirators caused an actual loss to investors exceeding $288 million. In addition to securities fraud, LaForte also engaged in a series of federal tax crimes.
LaForte and co-conspirators diverted approximately $20 million in taxable income from Par Funding to another entity controlled by LaForte and nominally owned by another, then filed false tax returns that did not report this income.
LaForte also received more than $9 million in cash kickbacks from a customer of Par Funding and did not report this income to the IRS on his individual tax returns. As a result, LaForte’s individual tax returns for the years 2016 through 2018 were false.
Acting Deputy Assistant Attorney General Karen E. Kelly of the Tax Division and U.S. Attorney David Metcalf for the Eastern District of Pennsylvania made the announcement.
The FBI, IRS Criminal Investigation, and the Federal Deposit Insurance Corporation Office of Inspector General investigated the case.
Assistant U.S. Attorneys Matthew Newcomer, Sam Dalke, Eric Gill, and Patrick J. Murray for the Eastern District of Pennsylvania prosecuted the case.
Key Facts
- State: Pennsylvania
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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