Joseph LaForte and his brother James LaForte, the key operators behind Complete Business Solutions Group Inc. doing business as Par Funding, have admitted to running a corrupt financial scheme that deceived investors and generated more than $100 million through unlawful means. According to the U.S. Attorney's Office for the Eastern District of Pennsylvania on Tuesday, the LaForte brothers entered guilty pleas to charges including racketeering conspiracy, securities fraud, and obstruction of justice.
Running the day-to-day operations as president and CEO, Joseph LaForte has also pleaded guilty to additional charges involving tax crimes, perjury, and obstruction of justice, which included aiding and abetting his brother's assault on one of Par Funding's receivership attorneys. Owning a history of prior felony convictions, he also admitted to gun possession charges, as reported by the U.S. Attorney's Office. Sent to the hospital, having suffered a violent encounter at the hands of James, the Philadelphia attorney was assisting in the seizure of the LaForte family's assets at the time.
James LaForte, involved in sales and collections with managerial authority, has owned up to his role in using threats of violence to recover overdue payments from a Par Funding merchant customer. "The guilty pleas in this case hold the defendants accountable for operating a fraudulent investment vehicle," stated Patricia Tarasca, Special Agent in Charge of the Federal Deposit Insurance Corporation Office of Inspector General, New York Region, in a statement obtained by the U.S. Attorney's Office.
A fraudulent foundation was constructed by the LaFortes with grave deceit involving Joseph's misrepresentation of his identity and criminal past, as well as the company's financial stability and operational procedures. Found during a search of his former residence, Joseph also faced charges due to the firearms presence. Agreements are in place for Joseph LaForte to potentially serve between 13½ to 15½ years' imprisonment, while James LaForte may receive a sentence ranging from approximately 9 to 11½ years, pending district court approval at sentencing time.
Moreover, Joseph's spouse, Lisa McElhone, admitted guilt as part of their efforts to evade Pennsylvania taxes by feigning Floridian residency. The indictment detailed not only a litany of financial transgressions but also a violent and obstructive campaign against those tasked with dismantling their illicit operation. Special agents from the FBI, IRS-Criminal Investigation, and the FDIC OIG, overseen by a team of Assistant United States Attorneys, spearheaded the investigation leading to the thorough unraveling of the LaFortes' schemes. "Investigating complex financial crimes has been a priority," declared Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia, as noted by the U.S. Attorney's Office.
