Notorious Alternative Lending CEO of Par Funding Sentenced to 15½ Years in Prison for RICO Conspiracy, Securities Fraud, Tax Crimes, and Related Offenses
- Thomas Tramaglini
- Mar 31
- 2 min read
On Wednesday, March 26th, United States Attorney David Metcalf announced that Joseph LaForte, the former CEO of Par Funding, was sentenced to 186 months in prison and three years of supervised release, which includes 12 months of home confinement, for multiple crimes related to the operation of a fraudulent investment vehicle called Complete Business Solutions Group Inc. d/b/a Par Funding (“Par Funding”). Additionally, LaForte was ordered to forfeit various assets, including a private jet and an investment account worth approximately $20 million, along with a $120 million forfeiture money judgment, restitution totaling $314 million, and a $50,000 fine.
The team at Beacon has broken down the lawsuit and shared some of the implications.
By Thomas Tramaglini, Chief Operations Officer
Partner, The Center for MCA Research
Last week, US District Judge Kearney sentenced Joseph LaForte, the former and infamous owner of Par Funding for more than 15 years in prison, as well as other fines, seizure of assets, and restitution for numerous crimes arising from the his operation of the alternative lender Par Funding. For those in the industry, Par was known for their massive funding, development and massive use of "reverse consolidations," as well as stories of threatening clients if they had trouble paying.
As reported in Lancaster Online, not only did they run a funding company with many issues including defrauding investors, perhaps the most significant thing that people in the industry heard were the stories of threatening those who needed help making their payments.
And when Par needed to collect on loans, prosecutors said, LaForte and others, including his brother, a reputed associate of New York's Gambino crime family, told borrowers they would be physically harmed — or even killed — if they didn't pay up.
One borrower testified Wednesday that when she fell behind on her payments, she reached out to LaForte for help, and he responded by threatening to place a bomb in her car, kidnap her kids, or give her "cement shoes."
"'You'll go to the bottom of the Hudson [River], so figure it out,'" she said LaForte told her. "'I want to be paid.'"
Dr. Thomas Tramaglini is the Director of Operations and Negotiation for Beacon Client Solutions, a company that supports small businesses on a host of fronts, especially MCA debt. Thomas has been a small business owner for many years, as well as held leadership positions in several organizations and companies. Thomas holds a B.A. in History, as well as Masters and Doctorates in Organizational Leadership from Rutgers University, The State University of New Jersey.
Disclaimer: Beacon Client Solutions is not an accountancy, or a law firm. We are business consultants. While Beacon works with outstanding attorneys and accountants, we cannot and do not provide legal or tax advice. All of our work is connected to those who are legally certified to give such advice. Beacon does have a longstanding body of work in MCA resolution and understands what small business owners deal with, specific to MCA. Beacon Client Solutions serves clients in all 50 states, Puerto Rico, Mexico, and Canada.
Comments