Additional Information for Par Funding

The following describes a government action that has been resolved by either a settlement or a decision by a court or administrative agency.  If the matter is being appealed, it will be noted below.

On November 28, 2018, the business entered into a Consent Order with the Pennsylvania Department of Banking and Securities, Bureau of Securities Compliance and Examinations for violations of the Pennsylvania Securities Act of 1972. The settlement resolves allegations that the company violated Pennsylvania securities laws by entering into agreements with unregistered agents to sell securities. As a result of the Consent Order, the business was ordered to pay an administrative assessment of $499,000.00., and to comply with the 1972 Act and Regulations. 

This Agreement was for settlement purposes only and should not be considered as an admission of guilt or finding of violation of the law. The consent order is effective immediately.   

For more information on this action, please visit:

https://www.dobs.pa.gov/Documents/Enforcement%20Orders/2018/112818_CompleteBusinessSolutions.pdf  

The following describes a pending government action that has been formally brought by a government agency but has not yet been resolved. We are providing a summary of the government's allegations, which have not yet been proven.

On December 27, 2018, the New Jersey Bureau of Securities (NJBS) issued an Emergency Cease and Desist Order for alleged violations of the New Jersey Uniform Securities Law. The business was ordered to immediately cease and desist offering and selling unregistered securities. The NJBS also found that the business allegedly entered into "finder's fee agreements" with individuals to offer and sell securities, of which some of the finders, who received commissions, were not registered to offer or sell securities in the state. 

This matter is pending. For more information on this action, please contact the New Jersey Bureau of Securities at (973) 504-3600 or visit:

https://www.nj.gov/oag/newsreleases18/CBSG-dba-PAR-Funding-Order.pdf

The following describes a pending government action that has been formally brought by a government agency but has not yet been resolved. We are providing a summary of the government's allegations, which have not yet been proven.

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