PHILADELPHIA, PA — Joseph Cole Barleta, 41, of Philadelphia, was sentenced yesterday to 66 months in federal prison for racketeering conspiracy in connection with a massive fraud scheme involving the now-defunct investment vehicle Complete Business Solutions Group Inc., also known as Par Funding.
Barleta, who pleaded guilty to the charge last October, admitted to manipulating financial records to mislead investors into believing Par Funding was a profitable endeavor, despite significant financial losses. The fraudulent operation, orchestrated alongside co-defendants Joseph LaForte, James LaForte, and others, caused an actual fraud loss of approximately $404 million, later adjusted to $288 million after credit for seized collateral.
Barleta’s sentence, handed down by U.S. District Court Judge Mark A. Kearney, includes three years of supervised release, restitution totaling $302.7 million, and forfeiture of over $8 million.
“Barleta played a key role in the massive fraud scheme that was Par Funding,” noted 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 targeted numerous investors through securities and wire fraud. Investigations revealed that Barleta and his associates falsified financial data to cover up Par Funding’s financial instability. The operation unraveled in July 2020 when the Securities and Exchange Commission placed the company in receivership.
Co-conspirators Joseph and James LaForte also faced justice, receiving sentences earlier this year of 15½ and 11½ years, respectively.
The case was a collaborative effort involving the FBI, FDIC Office of Inspector General, IRS Criminal Investigation, Pennsylvania State Police, and the SEC.
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