Joseph Cole Barleta, a Philadelphia native and former Chief Financial Officer of Complete Business Solutions Group Inc., operating as Par Funding, has been sentenced to a 66-month prison term for his role in a racketeering conspiracy. The punishment was handed down by United States District Court Judge Mark A. Kearney, as the U.S. Attorney's Office in the Eastern District of Pennsylvania spearheaded the case. On top of his prison sentence, Barleta is to face three years of supervised release, pay more than $302 million in restitution, and forfeit over $8 million, according to a press release from the U.S. Attorney's Office.
The charges come following a detailed investigation that exposed the fraudulent nature of Par Funding, where Barleta and his co-defendants, including Joseph LaForte and James LaForte, managed to successfully yet illicitly to deceive numerous investors. Barleta's admission to falsifying financial statements and manipulating internal books was a pivotal point in the case, casting him as a crucial figure in the operation's ability to feign profitability and solvency.
As part of the sentencing, Barleta's restitution amount was calculated based on the actual fraud loss caused by the scheme, which court records put at approximately $404 million. This figure was later reduced to about $288 million after considering the assets seized when federal authorities intervened and the SEC enacted receivership of Par Funding in 2020.
Last year saw guilty pleas from the LaForte brothers, who were sentenced in March; Joe LaForte received 15½ years and James LaForte 11½ years behind bars for racketeering conspiracy, securities fraud, and associated crimes. U.S. Attorney David Metcalf remarked that Barleta's sentencing holds accountable, an individual who significantly participated in an extensive and destructive conspiracy, according to the same press release. The FBI, FDIC OIG, IRS Criminal Investigation, and Pennsylvania State Police all contributed to the investigation, with Assistant United States Attorneys Matthew Newcomer, Samuel Dalke, and Eric Gill leading the prosecution.
Special Agent in Charge of the FBI's Philadelphia Division, Wayne A. Jacobs, and Special Agent in Charge of the FDIC OIG, Patricia Tarasca, reaffirmed their stance against complex financial crimes.
