SEC Halts Par Funding's Fraudulent Scheme Against Small Businesses


The Securities and Exchange Commission recently halted an alleged fraudulent scheme perpetrated by Complete Business Solutions Group Inc. (d/b/a Par Funding). The scheme raised about $500 million from more than 1,000 investors.

Morgan & Morgan’s securities attorneys are investigating potential claims involving Par Funding’s scheme.

The SEC’s complaint alleges that spouses Joseph LaForte and Lisa McElhone masterminded the scheme, which raised investment funds via unregistered securities offerings for their cash advance company, Par Funding.

According to the SEC, Par Funding loaned funds to many small businesses, and sometimes charged more than 400% interest. Par Funding used unregistered sales agents to sell promissory notes while deceiving investors about Par Funding’s business and how investor funds would be used, the SEC alleges. Par Funding also hid LaForte’s criminal history from investors, according to the SEC.

The U.S. District Court for the Southern District of Florida recently granted the SEC’s request for emergency relief and ordered a temporary asset freeze against Par Funding, McElhone, LaForte, and several companies whose unregistered sales agents participated in the scheme.

The court also has approved appointment of a receiver over the company defendants, which include the following companies in addition to Par Funding: Full Spectrum Processing; ABetterFinancialPna.Com (d/b/a A Better Financial Plan); ABFP Management Company (f/k/a Pillar Life Settlement Management Company); ABFP Income Fund; United Fidelis Group; Fidelis Financial Planning; Retirement Evolution Group; and Retirement Evolution Income Fund.

If you have suffered losses relating to Par Funding’s promissory notes or loans, our attorneys may be able to help. Contact us at 888.744.0142 for a free case evaluation.

The securities attorneys in Morgan & Morgan’s Business Trial Group have an extensive history of helping investors recover their losses. Our attorneys have helped investors recover tens of millions of dollars of investment losses.

The Business Trial Group is part of the largest contingency law firm in the nation, with over 550 lawyers and 50 offices. Because we work on a contingency-fee basis, we are only paid if we successfully recover money for you.