James LaForte, 48, from New York, has been sentenced to 11½ years in prison for his role in a fraudulent investment scheme known as Complete Business Solutions Group, Inc., or Par Funding. U.S. District Court Judge Mark A. Kearney also ordered three years of supervised release with one year of home confinement and restitution payments totaling $2,488,645.
LaForte was part of a criminal enterprise that operated Par Funding fraudulently until it was placed under court-appointed receivership following a lawsuit by the U.S. Securities and Exchange Commission (SEC). In February 2024, he was charged alongside his brother Joseph LaForte and CFO Joseph Cole Barleta with racketeering conspiracy.
In September 2024, James LaForte pleaded guilty to multiple charges including racketeering conspiracy and securities fraud. He also admitted to extortionate collection of debt and obstructing justice through violence against an attorney involved in the case.
U.S. Attorney David Metcalf stated: "James LaForte served as one of his brother’s enforcers... As today’s sentence shows, this brand of brazen and violent lawbreaking simply won’t be tolerated in the Eastern District of Pennsylvania."
Wayne A. Jacobs from FBI Philadelphia emphasized their commitment to tackling financial crimes: "James LaForte participated in a criminal enterprise driven by greed... The FBI is proud to stand with our partners in the pursuit of justice."
Patricia Tarasca from FDIC OIG remarked on the significant harm caused: "The defendant... caused significant financial harm to numerous investors."
Joseph LaForte also pleaded guilty last September and awaits sentencing on March 26, 2025. Barleta will be sentenced on June 2, 2025.
This case was handled by various agencies including the FBI and IRS-Criminal Investigation. The SEC conducted investigations related to civil securities fraud charges linked to this prosecution.