Gambino Soldier gets nearly 12 years for $400 million fraud
James LaForte Brutally Assaulted Receivership Attorney, Threatened Government Witnesses, Extorted Merchants
PHILADELPHIA – United States Attorney David Metcalf announced that James LaForte, 48, of New York, New York, was sentenced today by United States District Court Judge Mark A. Kearney to 137 months’ imprisonment, followed by three years of supervised release to include 12 months’ home confinement, for crimes committed as part of a criminal enterprise that ran a fraudulent investment vehicle[1] known as Complete Business Solutions Group, Inc., d/b/a Par Funding (“Par Funding”) for a number of years, before it was taken over by a court-appointed receivership pursuant to a lawsuit filed by the U.S. Securities and Exchange Commission. LaForte was also ordered to pay $2,488,645 in restitution, representing the portion of investor proceeds that he illegally diverted from Par Funding’s numerous investors for his own use through sham merchant contracts and other self-dealing conduct.
In February 2024, the defendant, his brother Joseph LaForte, Par Funding’s president and CEO, and Joseph Cole Barleta, Par Funding’s chief financial officer, were charged in an amended second superseding indictment with racketeering conspiracy and related crimes.
James LaForte pleaded guilty in September 2024 to racketeering conspiracy, securities fraud, and extortionate collection of debt, as well as obstruction of justice, for his violent assault on one of the Par Funding receivership’s Philadelphia attorneys, and retaliation, for threatening several government witnesses.
“James LaForte served as one of his brother’s enforcers,” said 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 for that man’s efforts to hold the LaForte family responsible for one of the largest financial frauds in Philadelphia’s history. As today’s sentence shows, this brand of brazen and violent lawbreaking simply won’t be tolerated in the Eastern District of Pennsylvania.”
“Since its earliest days, the FBI has been dedicated to investigating complex financial crimes,” said Wayne A. Jacobs, Special Agent in Charge of FBI Philadelphia. “James LaForte participated in a criminal enterprise driven by greed and sustained through threats and violence. The FBI is proud to stand with our partners in the pursuit of justice — disrupting these schemes and ensuring restitution for victims.”
“The defendant in this case was brought to justice for his participation in a criminal enterprise that caused significant financial harm to numerous investors,” said Special Agent in Charge Patricia Tarasca of the Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG), New York Region. “The FDIC OIG will continue to work with our law enforcement partners to pursue those who commit such egregious crimes that threaten investors and the safety and soundness of our Nation's financial institutions.”
Joseph LaForte also pleaded guilty in September 2024 to racketeering conspiracy, securities fraud, and related crimes and is scheduled to be sentenced on March 26, 2025. Barleta pleaded guilty in October 2024 to one count of racketeering conspiracy and is scheduled to be sentenced on June 2, 2025.
This case was investigated by the FBI, Internal Revenue Service - Criminal Investigation, and the Federal Deposit Insurance Corporation Office of Inspector General, and prosecuted by Assistant United States Attorneys Matthew Newcomer, Samuel Dalke, and Eric Gill.
The SEC in Florida investigated and litigated the civil securities fraud charges, which formed the basis of a portion of the Par Funding criminal prosecution.
[1] On January 21, 2025, the Court found the Par Funding fraud scheme caused an actual fraud loss of approximately $404,000,000, which it reduced to $288,395,088 after factoring in credit for collateral seized from Par Funding by federal authorities when the investigation became public in July 2020.
https://www.justice.gov/usao-edpa/pr/par-funding-enforcer-sentenced-11-12-years-prison-rico-conspiracy-obstruction-justice
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