Former CFO sentenced to over five years in prison for defrauding investors at Par Funding.

The sentencing of Joseph Cole Barleta, the former chief financial officer of the now-defunct Philadelphia lending company Par Funding, represents a significant development in a case involving one of Pennsylvania’s largest financial frauds. On Monday, a U.S. District Court judge sentenced Barleta to five and a half years in prison for his role in perpetuating fraudulent activities that misled investors and harmed numerous borrowers.

Barleta, who served as a critical figure in Par Funding’s operation, was instrumental in constructing misleading financial statements that obscured the true state of the company’s finances. Prosecutors indicated that these actions allowed the firm to deceive investors, raising over 0 million on the basis of false promises regarding returns. This manipulation facilitated the cash advance business’s continuation despite suffering significant losses.

While Barleta was not directly involved in some of the more violent tactics employed by other executives—such as threats and coercion to collect debts—his actions were vital to enabling the company’s ongoing funding operations. Over the years, Barleta reportedly received over million for his contributions, indicating the magnitude of his financial involvement in the scheme.

During the sentencing proceedings, Judge Mark Kearney emphasized Barleta’s responsibility in the fraud, despite acknowledging that his methodology was not as aggressive as that of his colleagues. The judge pointed out that Barleta’s combination of compliance and operational support helped underpin the criminal enterprise’s illegal activities. He remarked that Barleta played a crucial role in perpetuating the fraud, effectively nurturing the deceitful practices initiated by Par’s leaders.

Barleta expressed remorse for his actions, stating that he felt he had dishonored both himself and his family. Upon reflection, he admitted to abandoning the values instilled in him by his mother, a single parent who had worked hard to provide for him and his sister. Despite withstanding various pressures, including financial instability and the desire to secure a prosperous future for his family, Barleta acknowledged his failure to heed the warning signs regarding Par’s fraudulent nature.

Par Funding was established by Joseph LaForte, who sought to provide high-risk borrowers with loans at exorbitant interest rates. The company’s operations, which included aggressive marketing strategies, concealed a deeper narrative of deceit. With LaForte legally barred from selling securities due to prior felony convictions, Barleta’s role became instrumental in maintaining the façade of profitability and success.

The unraveling of this enterprise began in 2020 when Par Funding was unable to meet its financial obligations to investors. The company was subsequently placed under the control of a court-appointed receiver, leading to a series of federal investigations that culminated in multiple charges against its executives, including conspiracy, extortion, and wire fraud.

With most of the key players in the scandal—including LaForte—having pleaded guilty and received substantial sentences, Barleta’s case illustrates the far-reaching consequences of corporate malfeasance and the intricate nature of financial fraud schemes, highlighting the importance of accountability within financial institutions.

This case underscores the critical need for systemic reforms and rigorous oversight in lending practices to prevent similar frauds in the future, ensuring that both investors and borrowers are protected from deceptive practices.

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