Complete Business Solutions Group, Inc., known as Par Funding, pleaded guilty on Mar. 9 to conspiracy to commit wire fraud and securities fraud in a case involving the defrauding of investors out of hundreds of millions of dollars. The plea was entered before United States District Court Judge Mark A. Kearney by a court-appointed receiver who currently controls the company.
The case is significant due to the scale of losses suffered by investors and the involvement of multiple high-level executives. In January 2025, the court determined that Par Funding’s fraudulent activities resulted in an actual loss of about $404 million, later reduced to approximately $288 million after accounting for collateral seized when authorities intervened in July 2020.
Court documents show that Par Funding operated as a merchant cash advance company based in Center City Philadelphia, providing short-term financing to small businesses nationwide. To support these advances, the company raised large sums from investors while making false statements about its leadership, financial health, underwriting practices, and risk profile. The indictment states that company founder Joseph LaForte’s identity and criminal history were concealed from investors, and misleading information was provided regarding default rates, profitability, insurance coverage, and insider dealings.
The investigation led not only to Par Funding’s guilty plea but also to convictions for several key individuals involved with the company. Joe LaForte received a sentence of about 15½ years after pleading guilty to racketeering conspiracy and related offenses. His brother James LaForte was sentenced to roughly 11½ years for his role as a senior executive overseeing collections. Chief Financial Officer Joseph Cole Barleta received a sentence of 5½ years following his own guilty plea. Other associates—including Perry Abbonizio, Renato Gioe, Lisa McElhone, Rodney Ermel, and Kenneth Bacon—also pleaded guilty and were sentenced for their roles.
The investigation was conducted by federal agencies including the FBI, FDIC Office of Inspector General, IRS Criminal Investigation Division, Pennsylvania State Police, and prosecuted by Assistant United States Attorneys Matthew Newcomer, Samuel Dalke, and Eric Gill. The Securities and Exchange Commission in Florida handled related civil charges that contributed evidence for the criminal prosecution.
This case highlights ongoing efforts by law enforcement agencies to address large-scale financial fraud affecting investors across the country.
