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Par Funding probe: Principals indicted in long-running Philly financial fraud
Philadelphia Inquirer link: https://www.inquirer.com/news/par-funding-indictment-joseph-laforte-lisa-mcelhone-charges-20230523.html (paywalled for non-subscribers)
Federal authorities have indicted the founders of Par Funding, the Philadelphia-based cash-advance company at the center of an alleged $500 million financial fraud. In a 63-count indictment prosecutors charged founder Joseph LaForte and his wife, Lisa McElhone, with counts including conspiracy, wire fraud, securities fraud, tax evasion, obstruction of justice and perjury.
Also indicted with them were LaForte’s brother, Joseph, who was charged earlier this year for attacking a lawyer involved in the case and Par Funding’s chief financial officer, Joseph Cole Barleta. The indictment comes after an SEC lawsuit and an investigation that has already produced two guilty pleas — one from Par Funding’s managing partners, Perry Abbonizio, and another from Renato “Gino” Gioe, an enforcer for the company.
Broadly, the criminal activity alleged resembles the conduct detailed by the U.S. Securities and Exchange Commission in a civil fraud lawsuit filed in 2020. In that case, a federal judge in Florida ordered the defendants to pay more than $200 million. LaForte, McElhone, and Cole Barletta have appealed.
From its offices in Old City, prosecutors say, the company raised more than half a billion dollars between 2016 and 2021 by making “materially false and fraudulent” statements to investors about the safety of their money, and the true identity of Par Funding’s top management, while they lent it out to small businesses across the country on terms that, if fully paid, would have cost several times what they borrowed. In fact, many of the loans were uncollectible, according to the government. Prosecutors say LaForte and the others also kept investors in the dark about who was running Par Funding day to day.
Also indicted with them were LaForte’s brother, Joseph, who was charged earlier this year for attacking a lawyer involved in the case and Par Funding’s chief financial officer, Joseph Cole Barleta. The indictment comes after an SEC lawsuit and an investigation that has already produced two guilty pleas — one from Par Funding’s managing partners, Perry Abbonizio, and another from Renato “Gino” Gioe, an enforcer for the company.
Broadly, the criminal activity alleged resembles the conduct detailed by the U.S. Securities and Exchange Commission in a civil fraud lawsuit filed in 2020. In that case, a federal judge in Florida ordered the defendants to pay more than $200 million. LaForte, McElhone, and Cole Barletta have appealed.
From its offices in Old City, prosecutors say, the company raised more than half a billion dollars between 2016 and 2021 by making “materially false and fraudulent” statements to investors about the safety of their money, and the true identity of Par Funding’s top management, while they lent it out to small businesses across the country on terms that, if fully paid, would have cost several times what they borrowed. In fact, many of the loans were uncollectible, according to the government. Prosecutors say LaForte and the others also kept investors in the dark about who was running Par Funding day to day.
- more at link -
Sorry this is paywalled, but I thought the news might be of interest to several DUers in southeastern Pennsylvania.
2 replies
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= new reply since forum marked as read
My hometown....Been away for awhile, but am always interested in what's happening there. I'm old enough to remember ABSCAM.
