PAR FUNDING PRINCIPALS CHARGED WITH SECURITIES FRAUD, EXTORTION, TAX CRIMES, PERJURY, AND OBSTRUCTION

PHILADELPHIA – An indictment was unsealed today charging Complete Business Solutions Group, Inc., doing business as Par Funding, and four of its principals 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. These principals are Joseph LaForte, 52: Lisa McElhone, 43; Joseph Cole Barleta (“Joe Cole”), 39; and James LaForte, 46.

According to the indictment, from at least 2016 through July 2020, co-conspirators Joseph LaForte, Joe Cole, James LaForte, and others 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. Par Funding and these affiliates provided funding to businesses through short-term financing transactions, referred to as merchant cash advances (“MCAs”). To fund these MCAs, the defendants raised over $500 million from investors.

It is alleged that as part of their fundraising efforts, these defendants and their conspirators 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. It is alleged that Joseph LaForte, Joe Cole, James LaForte, and their conspirators engaged in this deception to conceal Joseph LaForte’s true role as the person operating the company and his significant criminal history from investors.

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. For example, the indictment alleges that Joseph LaForte threatened to “blow up” a delinquent customer’s home in May 2019 and asked another delinquent customer in August 2019 whether the customer had heard of “cement shoes.” In addition, the indictment alleges that in May 2018, James LaForte told one customer that he was a “soldier for the family” who had torched people’s cars and kicked people’s teeth in.

Furthermore, the indictment alleges that Joseph LaForte and Lisa McElhone committed a variety of tax crimes. For instance, 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. Furthermore, the indictment alleges that Joseph LaForte and Lisa McElhone worked together to evade the payment of half a million dollars of employment taxes that had been imposed on Joseph LaForte in connection with companies that he had operated in the mid-2000s. In addition, it is alleged that Joseph LaForte committed tax crimes by failing to report millions of dollars in cash kickbacks that he personally received from a Par Funding customer, and by regularly paying cash wages to Par Funding employees but not withholding taxes from these wages or reporting them to the IRS.

It is further alleged that Joseph LaForte and Joe Cole each committed perjury twice during depositions in federal lawsuits against Par Funding, making misrepresentations regarding various matters. For instance, the indictment alleges that Joseph LaForte lied under oath about his knowledge of his wife’s role at Par Funding, Joe Cole’s role at the company, and the company’s default rate. The indictment alleges that Joe Cole lied under oath about who was on Par Funding’s credit committee (which Joseph LaForte ran) and who ran Par Funding.

Finally, the indictment alleges that Joseph LaForte and James LaForte engaged in obstruction of justice, witness tampering, and retaliation. Specifically, it is alleged that in late February 2023, on the streets of Center City Philadelphia, James LaForte, with the assistance of and in coordination with Joseph LaForte, physically assaulted counsel for the Receiver for Par Funding in a lawsuit brought by the U.S. Securities and Exchange Commission in the Southern District of Florida. Moreover, in connection with the same lawsuit, the indictment alleges that Joseph LaForte threatened to cause serious bodily injury to another individual in November 2022. Lastly, it is alleged that James LaForte made threats of violence to multiple parties in early 2023 in an effort to interfere with the SEC lawsuit, a federal grand jury investigation, and an anticipated federal prosecution, as well as to retaliate against these parties.

If convicted of all counts charged against them, the defendants face the following maximum possible sentences of imprisonment: Joseph LaForte – 796 years; McElhone – 70 years; Cole– 415 years; and James LaForte – 615 years. The defendants also face full restitution, a fine, and a period of supervised release and/or probation.

The case was investigated by the Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigations, the Federal Deposit Insurance Corporation-Office of Inspector General, and Pennsylvania State Police and is being prosecuted by Assistant United States Attorneys Patrick J. Murray, Matthew Newcomer, and Alexandra Lastowski. The SEC in Florida investigated and litigated the civil securities fraud charges which formed the basis of a portion of the criminal prosecution.

An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.

https://www.justice.gov/usao-edpa/p...s-fraud-extortion-tax-crimes-perjury-and

Has absolutely nothing to do with the mob.

It is not a mob case, per se. But the fact is that two of the four individuals indicted are the sons of Joseph (Joe the Cat) La Forte Sr., who was a top caporegime within the Carlo Gambino Family of New York, Joseph La Forte Jr., and his kid brother, James La Forte.

Not to mention the fact that this was a multi-year, multimillion-dollar fraud case, in and of itself, with two guys who were former mob associates makes this a worthwhile post.

If you're not already familiar with "Joe the Cat" La Forte, he was based on Mulberry Street in NY's Little Italy neighborhood. He was very close to Gambino underboss Neil Dellacroce, and was a top gambler in his own right.

His sons, especially Joe Jr., were very close to their father, and Joe Jr. was involved with his dad's gambling operations for years in Downtown NY, and on Staten Island. I also think he took a pinch with his father.

Correction: as Giacalone pointed out, they were the grandsons of La Forte, not the sons.

You're getting this a bit wrong. They are the grandsons of Joe the Cat.

By the way, the younger brother was on record with the Gambinos. This has probably everything to do with the mob

I am not sure but I think Joe LaForte jr is a made guy with the Gambino Family.

If i remember correctly, Sammy Gravano talked about it in one of his videos. he tells a story about Joe The Cat and mentions that he had his son inducted into the family.

There ya go. I knew that Joe Jr. was his father's son (in more ways than one), lol. And that he was, in fact, a formal on-record "associate," not only of his dad, but the overall Gambino Family at large.

So it doesn't surprise in the least that Joe Jr. got himself inducted. After all, there are so many formerly un-connected guys who get it nowadays, that the son of a longtime member is certainly gonna get preferential treatment over others.

Joe Jr. is passed on. Joe "the third" is the one who got indicted

Bingo! This is mostly likely, directly or indirectly, tied to Gambino Family higher-ups. And I wouldn't doubt that as mob guys they've been kicking up a good chunk of change to whoever their "with" nowadays. It is the custom. Especially as La Forte's sons. They know the program.

Very true. The LaFortes are an interesting bunch.

These boys are insanely wealthy and they have the bloodlines. It wouldn't surprise me one bit if at least one of them has been straightened out already

No doubt! It's their's for the taking (that's if they even want it). It's also quite possible that they are mobbed-up, but respectfully declined the button. After all, as you say, they're very very wealthy guys. So what's the big benefit to them? If they have a problem, they can still go where they gotta go. But at this point in time, especially living out of state like kings. IMO, they really don't need it.

They definitely don't need it. A lot of these guys today are doing really well when they get proposed. That life has really turned into something unrecognizable because they are straightening out guys who aren't street guys. They're basically spoiled businessmen who just love The Godfather a little too much. The life is over

The old man LaForte had more money and real estate than God in the 1980's, his kids and grandkids should be real estate moguls not involved with the mob

You have provided an excellent, and often times, very accurate, depiction of the current "state of affairs" in Cosa Nostra today. Many of these "current" guys couldn't shine the shoes of the old-timers. Not all of them, but many of the guys today, are NOT street guys. In fact, back in the day they'd be considered "suckers" to be fleeced. But "The Life" has changed so much and is in such a weakened state, they hand these guys "buttons" so the hierarchy (and real hoodlums) can stick their hands in the pockets of these idiots. It's basically become a modern day "shakedown" to grab money from the legitimate businesses of these "so-called" made guys. But these empty suits are not sharp enough to understand that. They're too enamored with "The Godfather" image as you so astutely pointed out in your earlier post.

Bravo Giacalone. That was epic! Lol

The “life” isn’t a definitive thing.

Just like real life the “life” changes.

The mob’s #1 skill has always been its ability to adapt.

Comparing today’s American mobsters to those who were active in the 30s, 50s, 70s even 80s is ridiculous. Especially on this forum. We’re not on Reddit. We should know better.

Back in the day those “super cool tough movie-like Vito Corleone mobsters” many so openly love around the internet didn’t have to deal with the laws, technology and society that today’s American LCN face.

The American LCN realized roughly a generation ago that they’d all end up serving multiple life sentences if they continued acting like nothing ever changes.

The ONE mistake the mob made was not realizing this sooner. Had they kept their guns in their holsters more often and insulate themselves they’d be in a better shape today.

Where’s Casso? Where’s Gravano? Where’s Basciano? Where are all those street guys now?

The Bonannos got hit savagely because higher ups were directly involved in murders and didn’t buffer. The Colombos are a fraction of who they once were because of the war they had in the 90s: most of the rats that came out of that family were due to it. They’re never going to recover. Super smart and cool and tough, uh? Philly almost went the same way and it was solely thanks to a level-minded, low key and business-centered administration that they managed to survive. And yet they are hit constantly and one of their young key guy (Nicodemo) is behind bars until he’ll be middle age. There’s plenty of other examples: Crea & Co. getting life, “street guy” Arrillotta single-handedly wiping out the Springfield crew due to the murders he was connected to…

These LaForte guys (if it turns out their scam was indeed connected) are doing the right thing by getting involved in white collar stuff, no violence, etc and use their bloodline connections to get ahead.

Even the term “street guy” is too vague. Just because someone isn’t a leg-breaking goon doesn’t mean he isn’t “respected” on the streets. This isn’t some low brow steer gang, money and the ability to earn lots of if with little ruckus gets you more respect than anything. And if pushes come to shoves they’ll always have
plenty of “street guys” that can be tasked to intimidate / hurt / stalk someone.

Indictments constantly prove that there’s a quite balanced presence of both type of “guys” within LCN today. Some get ahead when they’re proven not to be too crazy and others don’t because they’re just leg breakers and goons. Simple as that.

This is the smartest approach: why risking the money makers on lousy street stuff when you can simply send your hounds when needed and keep the good earners protected. Does an Amazon branch manager drive a delivery truck? I don’t think so.

Not everyone gets ahead. In life as well as in that “life”.

As for the whole “Godfather” comparison: 1) it’s fiction 2) it’s outdated and 3) I don’t want to repeat myself but if Vito Corleone was real and alive today he’d be like Bellomo or Cefalù and he would keep the hot heads and the trigger happy guys at a mile’s distance and favor a more businessman-like approach. More Tom Hagen than Sonny.

This is anything but weak. It’s smart.

Yes, you are very correct. Thank you for that Giacalone

Much of what you just wrote is very correct. The life, just like in real life, morphs as the years go on. That life will never ever be the same as it was. They'll never be as strong, or have the all-pervasive influence the mob once did over society in general. Its a much different world today. And those who still wanna be a part of that life, that world, need to adapt, for better or worse, accordingly.

Good post LuanKuci

Yes NY I agree…although I was a bit redundant I admit.

I don’t consider the present-day state of the American LCN as weak weak. Unquestionably downsized compared to generations ago, yes absolutely, but, (All. Things. Considered) I’m stunned by how active, resilient, eclectic they all are *considering* how much and for how long they’ve been hit.

Also, they are all based in the most surveilled and law-enforced area of the nation (second to DC maybe). Perhaps even of the whole Western world (save for London).

It’s easier to be a Vito Rizzuto when you are active in a nation (Canada) with outdated mafia laws and a more incompetent and corrupted police force (Quebec).

It’s easier to get away with violent crimes, assaults, arson, bombings, murder if you were active before CCTV, environmental wire-taping, satellite locational technology.

It’s easier not to rat when you weren’t facing hard time for regular mob stuff due to Rico.

Those old time mafiosi we all watch movies about wouldn’t last ONE MONTH in today’s underworld unless they’d wise up and act accordingly to the times.

Which is what smart people (not just criminals or mobsters) do.

Absolutely. Joe LaForte Sr. was a very wealthy guy, both in the rackets and in business. He owned multimillion dollar properties Downtown NY, on S.I., collected rents, etc.

But as the old sayings go, "old habits are sometimes hard to break" and, "the fruit doesn't fall far from the tree." Lol. Maybe there's some truth to that happening here. In a different, but not unsimilar way.

To be fair, the Bonannos weren't hit with murder charges until guys began flipping over charges that had nothing to do with the murders. The feds were never going to solve those hits otherwise. This is actually the case with most mob hits. CSI tactics rarely work on the mob, the feds are nothing without their rats.

The grandfather had all the money.

He died recently not sure what he did with it.

The boys were not wealthy they robbed all the money they had.

The made big money in the title business they had their mother, sister, brother in law all on the books at that title company robbed millions upon millions of dollars.

They got their whole family indicted.
Everyone except the father.

Their sister, brother in law and their cousin were all attorneys
They all got disbarred after they were convicted.

Just when Joe was getting out in a halfway house he got pinched for loan sharking with TG Graziano.

When he got out from that pinch he started PAR funding.
They raised $500MM and stole $200MM of it.

That is where they acquired their wealth.

In between pulling off these white collar scams they were hustling on the street
Giving out juice loans a few thousand at a time and taking action.

I am pretty sure their father is Buddy Laforte
It’s been a long time and my memory isn’t that good anymore.

They were never walking around their grandfathers money.
They stole everything they have now.

With all that said

They are going to get hit so hard this time around.
The brother James two months ago batted out the attorney working for the feds in the case,
He followed him after a hearing put a mask on and batted him out in the middle of the day.

This is the 3rd time they are being charged federally.
With the big money on the case and now the violence.

These brothers are prob not going to be offers a plea the feds HATE them I betcha S
Joe gets a 30 Piece
James gets 20+
And the poor wife her life is ruined she was no master mind she was along for the ride.

Now she is going down with the ship.

https://www.abajournal.com/news/art...ter-beating-brother-of-target-is-charged

Lawyer trying to collect cash for defrauded investors hospitalized after beating; brother of target charged
BY DEBRA CASSENS WEISS

MARCH 7, 2023, 10:30 AM CST

Joe was always the business man and James was always a thug since way back, when they were still young adults.

Gotti hated Laforte Sr
Dellacroche shelved Buddy Laforte

During the Gotti years they were on the outs.

So both the father and son were on the outs.
Not sure if Laforte sr was officially shelved but t think the feds warned him at one point saying his life was in danger

They picked Gotti talking about him so bad that the feds thought he was going to whack him

Joseph Buddy LaForte Jr is the uncle of the LaForte brothers indicted.

Bump after James LaForte was arrested in a big Italy-NYC sweep.

Good move Malavita

How could you read that article see the Laforte name and say it has nothing to do with the mob.So does Merlino or Borgesi whoever get a payment out of this since its in Philly,Pretty sure the Laforte's were close to the Bergin crew.yeah, nice post Bensonhurst.Damn, they are finished what beating that attorney.These guys are strait criminals old school hoods holly shit

Yes, I agree with you.