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SECURITIES AND EXCHANGE COMMISSION, v. COMPLETE BUSINESS SOLUTIONS GROUP, INC. d/b/a PAR FUNDING, et al., Case number 9:20-cv-81205 S.D. Fla

UPDATE As of October 24, 2022:

A Final Judgment regarding Michael C Furman was issued by the UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF FLORIDA as follows:

IT IS ORDERED AND ADJUDGED that Michael Furman is permanently restrained and enjoined from violating Section 17(a) of the Securities Act [(15 U.S.C. § 77q(a)] in the offer or sale of any security by the use of any means or instruments of transportation or communication in interstate commerce or by use of the mails, directly or indirectly:
(a) to employ any device, scheme, or artifice to defraud;
(b) to obtain money or property by means of any untrue statement of a material fact or any omission of a material fact necessary in order to make the statements made, in light of the circumstances under which they were made, not misleading; or to engage in any transaction, practice, or course of business which operates or would operate as a fraud or deceit upon the purchaser by, directly or indirectly (i) creating a false appearance or otherwise deceiving any person, or (ii) disseminating false or misleading documents, materials, or information or making, either orally or in writing, any false or misleading statement in any communication with any investor or prospective investor, about: (A) any investment in securities; (B) the prospects for success of any product or company; (C) the use of investor funds; (D) the safety of any securities investment; (E)
the use of investor funds or investment proceeds; (F) orders issued by state or federal enforcement agencies; (G) the financial status of an issuer; or (H) the management of an issuer.

IT IS FURTHER ORDERED AND ADJUDGED that, as provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the following who receive actual notice of this Final Judgment: (a) Furman’s officers, agents, servants, employees, and attorneys;
and (b) other persons in active concert or participation with Furman or with anyone described in
(a).

IT IS FURTHER ORDERED AND ADJUDGED that Furman is permanently restrained and enjoined from violating, directly or indirectly, Section 10(b) of the Exchange Act [15 U.S.C. § 78j(b)] and Rule 10b-5 promulgated thereunder [17 C.F.R. § 240.10b-5], by using any means or instrumentality of interstate commerce, or of the mails, or of any facility of any national securities exchange, in connection with the purchase or sale of any security:
(a) to employ any device, scheme, or artifice to defraud;
(b) to make any untrue statement of a material fact or to omit to state a material fact necessary in order to make the statements made, in the light of the circumstances under which they were made, not misleading; or (c) to engage in any act, practice, or course of business which operates or would
operate as a fraud or deceit upon any person.

IT IS FURTHER ORDERED AND ADJUDGED that, as provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the following who receive actual notice of this Final Judgment by personal service or otherwise: (a) Furman’s officers, agents, servants, employees, and attorneys; and (b) other persons in active concert or participation with Furman or with anyone described in (a)

IT IS FURTHER ORDERED AND ADJUDGED that Furman is permanently restrained and enjoined from violating Sections 5(a) and (c) of the Securities Act [15 U.S.C. § 77e] by, directly or indirectly, in the absence of any applicable exemption:
(a) Unless a registration statement is in effect as to a security, making use of any means or instruments of transportation or communication in interstate commerce or of the mails to sell such security through the use or medium of any prospectus or otherwise; or
(b) Making use of any means or instruments of transportation or communication in interstate commerce or of the mails to offer to sell or offer to buy through the use or medium of any prospectus or otherwise any security, unless a registration statement has been filed with the Commission as to such security, or while the registration statement is the subject of a refusal order or stop order or (prior to the effective date of the registration statement) any public proceeding or examination under Section 8 of the Securities Act [15 U.S.C. § 77h]

IT IS FURTHER ORDERED AND ADJUDGED that, as provided in Federal Rule of Civil Procedure 65(d)(2), the foregoing paragraph also binds the following who receive actual notice of this Final Judgment by personal service or otherwise: (a) Furman’s officers, agents, servants, employees, and attorneys; and (b) other persons in active concert or participation with Furman or with anyone described in (a)

IT IS FURTHER ORDERED AND ADJUDGED that Furman is liable to the Commission for $1,834,000 in disgorgement, representing his ill-gotten gains as a result of the conduct alleged in the Amended Complaint [ECF No. 119] and as found by the Jury [ECF No.1101]; prejudgment interest on disgorgement of $137,614.46; and a civil penalty of $190,000 pursuant to Section 20(d) of the Securities Act [15 U.S.C. § 77t(d)] and Section 21(d)(3) of theExchange Act [15 U.S.C. § 78u(d)(3)].

Furman shall pay the total of $2,161,614.46 to the Court-appointed Receiver within thirty (30) days of entry of this Final Judgment.

LINK: https://ecf.flsd.uscourts.gov/doc1/051125208719

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Securities and Exchange Commission (SEC)
vs. Complete Business Solutions Group Inc.
d/b/a/ Par Funding et al.,
No. 9:20-Cv-81205 ( S.D.Fl Filed Jul 31, 2020)
Litigation Release no. 24860 / July 31, 2020

As of July 31, 2020, The Securities and Exchange Commission announced that it has filed an emergency action and obtained a temporary restraining order and an asset freeze to stop an alleged fraudulent scheme that has raised nearly half a billion dollars from an estimated 1,200 investors nationwide.

According to the SEC's complaint, spouses Lisa McElhone and Joseph W. LaForte orchestrated a scheme to raise investor funds through unregistered securities offerings for the cash advance company they control, Complete Business Solutions Group Inc., doing business as Par Funding.

According to the complaint, McElhone and LaForte made opportunistic loans, some of which charged more than 400% interest, to small businesses across America.

The complaint alleges that, to fuel the loans, McElhone and LaForte, with the assistance of other Par Funding personnel, allegedly used a network of unregistered sales agents and affiliated entities to sell promissory notes to the public while lying to or misleading investors about Par Funding's business, how investor funds would be used, and LaForte's role and criminal history.

On July 28, 2020 the U.S. District Court for the Southern District of Florida granted the SEC's request for emergency relief and ordered a temporary asset freeze against Par Funding, McElhone, and LaForte; a related company McElhone and LaForte control, Full Spectrum Processing Inc.; and others, including various companies affiliated with certain unregistered sales agents who participated in the scheme.

The court granted the SEC's request to appoint a receiver for the 11 entity defendants, which includes United Fidelis Group and scheduled a hearing for August 4 to determine whether a preliminary injunction should be granted against the defendants for the pendency of the litigation.

The SEC's complaint, filed on July 24 and unsealed today, charges the defendants with violating the antifraud provisions of Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder, and the securities registration provisions of Sections 5(a) and 5(c) of the Securities Act.
The SEC seeks disgorgement of ill-gotten gains, prejudgment interest, and civil penalties.

For further assistance contact
Securities and Exchange Commission
801 Brickell Ave., Suite 1950
Miami, FL 33131
Phone: 305-982-6300
E-mail: miami@sec.gov

LINK: https://www.sec.gov/litigation/litreleases/2020/lr24860.htm