Former debt collector sentenced to 18 months in prison for using mob-style threats against borrowers.

Renato “Gino” Gioe, a former bodybuilder and reputed associate of organized crime, has been sentenced to 18 months in federal prison. This ruling stems from his involvement as an enforcer for Par Funding, a now-defunct Philadelphia-based lending company. Prosecutors charged that Gioe used intimidation tactics akin to those employed by loan sharks in order to collect debts from clients who were unable to pay.

During his tenure at Par Funding, which began in 2013, Gioe reported directly to the company’s founder, Joseph LaForte. His responsibilities included confronting borrowers with overdue payments and issuing alarming threats to compel them to settle their debts. This conduct allegedly included menacing statements about potential violent consequences for non-compliance, as detailed in court documents.

Gioe’s method of debt collection typically involved unannounced visits to clients, during which he sometimes resorted to theft. Notably, he stole a client’s Rolex watch in one instance, prompting the victim to seek assistance from LaForte, indicating the extreme fear and distress caused by Gioe’s aggressive tactics. Furthermore, prosecutors unveiled instances where Gioe threatened the lives of borrowers, suggesting that non-payment could result in severe harm to their families.

The sentence handed down to Gioe is significantly less harsh than the 15-year term imposed on LaForte the previous month, a disparity attributed in part to Gioe’s lesser role within the organization, which collapsed in 2020. Despite this, authorities noted Gioe’s cooperation during investigations as a mitigating factor, as he aided officials in understanding the extent of illegal activities conducted at Par Funding.

In February 2022, Gioe pled guilty to conspiracy and extortion-related charges, subsequently becoming a “cooperator” in the larger investigation into Par Funding’s operations. His comprehensive disclosures proved instrumental in constructing cases against other executives within the company.

Appearing before U.S. District Judge Mark Kearney, Gioe presented a markedly frail image, utilizing a wheelchair due to medical issues that have impaired his mobility. He expressed remorse for his past actions, attributing much of his misconduct to long-standing drug addiction, which he claims to have overcome.

Judge Kearney opted for a sentence to be served in a low-security facility, citing the need for rehabilitation over punitive measures. Nevertheless, he emphasized that Gioe’s role as a source of intimidation and fear justified a period of incarceration.

Par Funding initially presented itself as a legitimate cash-advance lender, garnering approximately 0 million over eight years through high-interest loans primarily aimed at small businesses unable to secure bank financing. However, the enterprise was later exposed as a fraudulent operation that concealed substantial operational deficits and misled investors.

The unraveling of Par Funding’s scheme began in 2020 when it failed to meet its financial obligations to investors. Following this, the Securities and Exchange Commission intervened, prompting legal scrutiny and criminal investigations that ultimately led to the convictions of several key figures within the company.

As part of the ongoing judicial proceedings, three other executives from Par Funding are awaiting sentencing, while another defendant, a former accountant, has opted for trial in the upcoming months. The wider repercussions of the case continue to unfold as authorities seek to address the extensive fraudulent activities associated with the firm.

Media News Source