James LaForte, a 48-year-old resident of New York, has been sentenced to over 11 years in prison for his involvement in a fraudulent investment scheme known as Par Funding. This decision was announced by U.S. Attorney David Metcalf and handed down by United States District Court Judge Mark A. Kearney. In addition to the prison term, LaForte will undergo three years of supervised release, including one year of home confinement.
LaForte's criminal activities were part of a larger enterprise operated under Complete Business Solutions Group, Inc., doing business as Par Funding. The company was placed under court-appointed receivership following a lawsuit by the U.S. Securities and Exchange Commission (SEC). He is also required to pay restitution amounting to $2,488,645 for illegally diverting investor funds through deceptive contracts.
In February 2024, James LaForte faced charges alongside his brother Joseph LaForte and Par Funding’s chief financial officer Joseph Cole Barleta for racketeering conspiracy and related offenses. By September 2024, James had pleaded guilty to multiple charges including racketeering conspiracy, securities fraud, extortionate collection of debt, obstruction of justice for assaulting an attorney linked to the case's receivership in Philadelphia, and retaliation against government witnesses.
"James LaForte served as one of his brother’s enforcers," stated U.S. Attorney Metcalf. "He not only used threats of violence to collect on Par Funding’s debt but stalked and assaulted an attorney in retaliation."
Wayne A. Jacobs from the FBI emphasized the organization's commitment: "The FBI is proud to stand with our partners in the pursuit of justice — disrupting these schemes and ensuring restitution for victims." Patricia Tarasca from the FDIC OIG also affirmed their dedication: "The defendant...caused significant financial harm...the FDIC OIG will continue to work with our law enforcement partners."
Joseph LaForte admitted guilt in September 2024 regarding similar charges and awaits sentencing on March 26, 2025. Barleta entered a guilty plea in October 2024 concerning racketeering conspiracy and is set for sentencing on June 2, 2025.
The investigation involved collaboration between the FBI, IRS - Criminal Investigation division, FDIC OIG office, with prosecution led by Assistant United States Attorneys Matthew Newcomer, Samuel Dalke, and Eric Gill.
This criminal prosecution partly stems from civil securities fraud charges investigated by the SEC in Florida.
