PHILADELPHIA, PA — Joseph Cole Barleta, 41, of Philadelphia, was sentenced yesterday to 66 months in federal prison for his role in a racketeering conspiracy tied to the massive fraud scheme involving Complete Business Solutions Group Inc., also known as Par Funding.
Barleta pleaded guilty in October to manipulating financial records to deceive investors into believing Par Funding was profitable, despite severe financial losses. Alongside co-defendants Joseph LaForte, James LaForte, and others, Barleta helped orchestrate a scheme resulting in a total fraud loss initially estimated at $404 million, later adjusted to $288 million after accounting for seized collateral.
U.S. District Court Judge Mark A. Kearney handed down the sentence, which includes three years of supervised release, restitution of $302.7 million, and forfeiture of more than $8 million.
“Barleta played a key role in the massive fraud scheme that was Par Funding,” said U.S. Attorney David Metcalf. “He participated in a conspiracy that inflicted significant harm on investors and the community. Justice has been served.”
The scheme involved securities and wire fraud targeting numerous investors. Investigations uncovered falsified financial data used to hide Par Funding’s unstable finances. The fraud unraveled in July 2020 when the Securities and Exchange Commission placed the company in receivership.
Co-conspirators Joseph and James LaForte were sentenced earlier this year to 15½ and 11½ years, respectively.
The case was prosecuted with support from the FBI, FDIC Office of Inspector General, IRS Criminal Investigation, Pennsylvania State Police, and the SEC.
