Joseph LaForte

What the public record shows

Joseph LaForte was CEO of Complete Business Solutions Group Inc., doing business as Par Funding, a company that raised money from investors to fund merchant cash advances — short-term financing for small businesses. He pleaded guilty to RICO conspiracy, securities fraud, tax crimes, and obstruction of justice (including for aiding his brother’s violent assault on an attorney), plus a firearms charge. He was sentenced to 186 months (15.5 years) in prison, with $314 million in restitution, a $120 million forfeiture money judgment, and forfeiture of assets including a private jet. Investors suffered actual losses exceeding $288 million. This is a criminal conviction — not an allegation.

The scheme

According to the U.S. Attorney’s Office for the Eastern District of Pennsylvania:

• Par Funding sold unregistered securities to investors, promising returns from its merchant-cash-advance lending business.
• LaForte and his co-conspirators misrepresented the health and performance of the underlying loan portfolio to keep investor money flowing.
• The operation extended into RICO-level conduct — including violence and intimidation used against people who threatened to expose the fraud, part of why LaForte also pleaded guilty to obstruction related to an assault on an attorney.

Why we rate this 1 / 10 — Avoid

A guilty plea covering racketeering, securities fraud, and obstruction — with a sentence and restitution among the largest on this site. The alternative-lending / merchant-cash- advance space has attracted significant fraud because it’s largely unregulated and opaque to retail investors.

Red flags this case teaches

• Unregistered securities offering high returns from a private lending business — verify SEC registration or a valid exemption before investing.
• Demand independent, audited loan-portfolio performance data, not the operator’s own reporting.
• Threats, secrecy, or retaliation against critics are an extreme red flag found in the most serious fraud cases.

Bottom line

Convicted and sentenced to 15.5 years. A private lending “investment” with no independent audit of the underlying loans, and no SEC registration, is a story you’re buying — not a portfolio.

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