[BB_Cooper]

Does anyone remember, how did the receiver handled outstanding contract when they shut down 1st Global last year?

[JakeS]

Same receiver from 1st Global as the one that that was appointed by the court on PAR .

[Kevin Henry-Seacoast]

Same receiver from 1st Global as the one that that was appointed by the court on PAR .

I know the trustee on the 1st Global case. I think the receivers might be different. The trustee on 1st Global is still working the case last I spoke with him.

[Kevin Henry-Seacoast]

Does anyone remember, how did the receiver handled outstanding contract when they shut down 1st Global last year?

He is still working the case and collecting funds to return to investors.

[Shorebird]

https://www.readingeagle.com/news/st...13e78d2b1.html

Everyone is going to plead the 5th or cut a deal.

Obviously the financial books are of concern to the owners.

There is going to be an example made here.

[Big Mack]

https://www.readingeagle.com/news/st...13e78d2b1.html

Hmm, 7 illegal guns and $2.5Mil in cash sitting around the house.

[Shorebird]

Judge orders Par Funding to stay out of seized accounts


Despite a court order locking doors and forbidding access to documents, Par Funding — the firm once based in Philadelphia facing charges of of investment fraud brought by federal regulators — remotely downloaded more than 100,000 company records in recent days and altered some, officials allege.


After hearing of this in an emergency plea from a court-appointed receiver, a federal judge over the weekend issued a new order to make certain electronic access was cut off and ordering Par Funding staff to destroy any information it took.

U.S. District Judge Rodolfo Ruiz in Miami, an area where Par Funding is now in part based, also on Sunday night gave the receiver he has named, lawyer Ryan Stumphauzer, the green-light to suspend Par Funding staff’s Google email and document access.

The legal skirmishing has been fast and furious since the SEC late last month filed a sweeping civil fraud complaint against Par Funding and financial advisers in Montgomery County and Florida, saying they had violated securities laws, hid the risk facing investors and kept secret the criminal past of a key executive and founder. Par suspended payments to investors in April and May and again this month.

Par and the other defendants insist in court papers that the investments were completely legitimate and it is the SEC that is endangering investors’ future returns by taking over the business and expelling more than 70 employees and their lawyers and other professionals.

In all, Ruiz issued three new orders Sunday:

He gave the receiver more authority to shut off Par employees’ remote access “for as long as required … to ensure that the electronic data … is being properly preserved.” He rejected a push by Par Funding’s lawyers interrogate Stumphauzer.He agreed to let Philadelphia law firm Fox Rothschild quit as Par Funding’s lawyer. Fox had asked to bow out after an order from the judge last week week make it plain Stumphauzer now represents the company. Fox had also represented Par owners Joseph LaForte and Lisa McElhone, a married couple, but they have since hired their own, separate lawyers, replacing Fox.The SEC says LaForte used aliases to hide his convictions for a $14 million real estate scam and operation of an illegal gambling operation, He is behind bars awaiting trial on federal charges of illegal possession of guns by a felon. The seven guns — and $2.5 million in cash — were seized by FBI after it raided his homes recently in Lower Merion, the Poconos and Florida. The FBI also searched Par Funding offices in two locations in Old City.

The fight over records broke out after the receiver’s Philadelphia-based lawyer, Gaetan Alfano, told he judge that Par Funding employees had “downloaded over 100,000 files from the Company’s G Suite cloud-based account” and information from the firm’s Quickbook accounting software. Alfano said documents were transferred as recently as Friday — two weeks after the judge’s order cutting off access.



Alfano said at about 10 employees had accessed date, including workers from the collections, accounting and information technology units. One employee, he added, not only downloaded documents, but also edited and changed information, including a spreadsheet titled ‘Leads/Consolidated Data Sheet’.”

In a separate filing, the SEC complained to the judge that a private investigator, Margaret Clemons, owner of a New York City detective agency, had been writing to Par Funding investors urging them to support the firm.

The federal agency said the detective has urged people to join in an attempt by Par Funding investor Alan Candell, a Villanova lawyer, who had filed papers with the court to intervene in the legal brawl, saying he was concerned that the receivership would damage his investment,

The SEC said that Candell had neglected to note he is a lawyer and had done legal work for Par and the business of Dean Vagnozzi, one of the financial advises named in the SEC complaint.

On Friday, Ruiz denied Candell’s petition to intervene in the case.

[Michael I]

Alfano said at about 10 employees had accessed date, including workers from the collections, accounting and information technology units. One employee, he added, not only downloaded documents, but also edited and changed information, including a spreadsheet titled ‘Leads/Consolidated Data Sheet’.”

I wonder how many of those are to sell the leads and nothing to do with par

[fundingsmbs]

will they have records of all the brokers who were paid commissions or possibly other funders who brokered to them?

[Shorebird]

Wow, they are going to go after the law firms as well.

[Kevin Henry-Seacoast]

One of the attorneys in the 1st Global case is going to do some federal time.....

[abfunders]

Do you think that we brokers who are ISOs with them going to get mail from them over and over again for the next couple of years like we did with 1st Global?

[Shorebird]

all the cockroaches are running to cut deals, bunch of Olympic sprinters.

[mrmrg]

Put a fork in them, they're done.

[Chambo]

Jumping into company records remotely after receivership?

Either they are VERY, VERY guilty and trying to hide evidence, or there are some dumb ass kids who worked there who do not understand how serious this is and were trying to grab some leads/customers to make a buck

[Steven_O]

Jumping into company records remotely after receivership?

Either they are VERY, VERY guilty and trying to hide evidence, or there are some dumb ass kids who worked there who do not understand how serious this is and were trying to grab some leads/customers to make a buck

I agree... but what's worse: not understanding how serious what you are doing is... or... really trying to make some coin on "PAR" leads.

Talk about bottom of the barrel.

[Kevin Henry-Seacoast]

Jumping into company records remotely after receivership?

Either they are VERY, VERY guilty and trying to hide evidence, or there are some dumb ass kids who worked there who do not understand how serious this is and were trying to grab some leads/customers to make a buck

It may also be viewed as tampering with evidence in a federal case. Good luck with that....

[FlexibleCapitalSolutions]

It may also be viewed as tampering with evidence in a federal case. Good luck with that....

did you read their response? if true, I don't understand why this is all happening. I was inclined to believe their response, since it was put forth by a reputable law firm, however, stuff like this smells like desperation to me, maybe there is more to the story ?

I cant imagine this was for leads.

[Chambo]

It may also be viewed as tampering with evidence in a federal case. Good luck with that....

Like I said, the folks involved do not understand how serious these infractions are, or they DO, and due to substance of what they were looking for, it was worth the risk

[golf2014]

Like I said, the folks involved do not understand how serious these infractions are, or they DO, and due to substance of what they were looking for, it was worth the risk

Typical organized crime tactics ..run the con etc till death....

[abfunders]

Well, I can't say I'm not jealous of the brokers for these deals in theory, but it would be interesting to know what actually happened:

https://www.inquirer.com/news/par-fu...outputType=amp

[Kevin Henry-Seacoast]

Well, I can't say I'm not jealous of the brokers for these deals in theory, but it would be interesting to know what actually happened:

https://www.inquirer.com/news/par-fu...outputType=amp

Jealous of the brokers until the receivers and trustees call them and claw back the commissions on deals..... They can and probably will......

[Yankeeman07]

Why would brokers get clawed back - ? They are 1099 Contractors and if the article is correct, most of Par Funding went to a limited number of companies. For all the hype behind Par, it does not appear they had many funded deals

[Kevin Henry-Seacoast]

Why would brokers get clawed back - ? They are 1099 Contractors and if the article is correct, most of Par Funding went to a limited number of companies. For all the hype behind Par, it does not appear they had many funded deals

Any trustee/receiver worth their salt can and will chase cash by any means. If you placed a deal for a "subject" company and they defaulted, you can cool believe the trustee/receiver is going to attempt to get the commissions back. 1099 or not.

[pcfunder]

It's extremely easy to be "at the top" when your funding horrible deals or offering the merchant way more than they could ever handle. Maybe good underwriting is the key? Maybe brokers should stop finding out who pays the most money and instead find out which company will keep their book alive for years and years? I know its very fairy tale like to think that brokers could ever care about a clients business but things will balance out over time.