Joseph LaForte, Securities Fraud, Pennsylvania 2020

PHILADELPHIA – Four principals of Par Funding, Complete Business Solutions Group, Inc., doing business as Par Funding, have been charged with various crimes, including securities fraud, extortionate collection of credit, tax crimes, perjury, obstruction of justice, witness retaliation, and witness tampering, announced United States Attorney Jacqueline C. Romero.

The indictment alleges that from at least 2016 through July 2020, co-conspirators Joseph LaForte, 52, Lisa McElhone, 43, Joseph Cole Barleta (“Joe Cole”), 39, and James LaForte, 46, participated in a conspiracy to commit wire fraud and securities fraud in connection with funds that were raised from investors in Par Funding and its affiliates.

The indictment alleges that the defendants caused false and misleading information to be conveyed to investors regarding various issues, including Joseph LaForte’s true name, his role at Par Funding, and his criminal history, Par Funding’s underwriting process, the diversity of the company’s MCA portfolio, Par Funding’s default rate, Par Funding’s financial success and profitability, the company’s insurance, and the defendants’ self-dealing.

For instance, the indictment alleges that although Joseph LaForte operated Par Funding and referred to it as his business, he concealed this ownership and control by using his wife, Lisa McElhone, as his nominee. Joseph LaForte also used several aliases, such as “Joe Mack,” while working at the company.

The indictment also alleges that Joseph LaForte and James LaForte conspired with an individual named Renato “Gino” Gioe to participate in the extortionate collection of credit. It is alleged that during the course of Par Funding’s operations, these individuals made hostile, threatening, and intimidating communications to Par Funding’s customers in person and over the telephone in order to collect on delinquent MCAs.

Furthermore, the indictment alleges that Joseph LaForte and Lisa McElhone committed a variety of tax crimes. It is alleged that the married couple defrauded the Commonwealth of Pennsylvania out of approximately $1.2 million of state taxes by falsely claiming to be residents of Florida, even though they worked, lived, and spent more than 300 days per year in Pennsylvania.

The indictment charges Joseph LaForte, 52, Lisa McElhone, 43, Joseph Cole Barleta (“Joe Cole”), 39, and James LaForte, 46, with securities fraud, extortionate collection of credit, tax crimes, perjury, obstruction of justice, witness retaliation, and witness tampering. The case is currently ongoing.

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