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UNITED STATES DISTRICT COURT

SOUTHERN DISTRICT OF FLORIDA

CASE NO. 20-CV-81205-RAR

SECURITIES AND EXCHANGE 

COMMISSION,

Plaintiff,

v. 

COMPLETE BUSINESS SOLUTIONS 

GROUP, INC. d/b/a PAR FUNDING, et al.,

Defendants.

______________________________________/ 

ORDER (1) FOR JOSEPH LAFORTE AND LISA 

MCELHONE TO SHOW CAUSE WHY THEY SHOULD NOT BE 

HELD IN CONTEMPT AND (2) GRANTING RECEIVER’S MOTION TO 

LIFT LITIGATION INJUNCTION AGAINST SPECIFIED THIRD PARTIES

THIS CAUSE comes before the Court upon the Receiver’s Motion for an Order to Show 

Cause Why Defendants Joseph LaForte and Lisa McElhone Should Not Be Held in Contempt, and 

to Lift Litigation Injunction Against Specified Third Parties [ECF No. 1328] (“Motion”), filed on 

July 29, 2022. The Court having reviewed the Motion and the record in this matter, and being 

otherwise fully advised, it is hereby 

ORDERED AND ADJUDGED that the Motion is GRANTED as set forth herein.

A party may initiate contempt proceedings by filing a motion requesting the court to issue 

an order to show cause why a party should not be held in civil contempt. Newman v. State of Ala., 

683 F.2d 1312, 1318 (11th Cir. 1982). “If the court finds that the conduct as alleged would violate 

the prior order, it enters an order requiring [the party] to show cause why [the party] should not be 

held in contempt and conducts a hearing on the matter.” Mercer v. Mitchell, 908 F.2d 763, 768 

(11th Cir. 1990). 

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The Court’s Orders appointing the Receiver in this case [ECF Nos. 36, 141, 579, et al.] 

(“Orders”) authorize the Receiver to exercise exclusive possession or control over Receivership 

Property and to marshal and preserve Receivership Assets and Recoverable Assets. The Orders 

also prohibit Defendants from interfering with the Receiver’s efforts to take control, possession, 

or management of any Receivership Property. 

The Motion asserts that despite the Orders, Defendants Joseph LaForte and Lisa McElhone, 

with the assistance of various third parties, diverted funds due and owing to the Receivership 

Estate, and interfered with the Receiver’s efforts to recover Receivership Property and to marshal 

and preserve Receivership Assets and Recoverable Assets. See Mot. at 10-16. Specifically, the 

Motion notes that Defendants Joseph LaForte and Lisa McElhone violated the Orders by: (1)

diverting merchant collections from CBSG and CFS to other entities LaForte and McElhone 

controlled; (2) laundering the diverted funds through shell and nominee corporations; and (3) using 

the laundered funds for their personal use and benefit, including the payment of their legal and 

expert witness fees in this case. Id. at 10. 

The Receiver also requests the Court to lift the litigation injunction provided for in the 

Amended Order Appointing Receiver dated August 13, 2020 [ECF No. 141] to allow the Receiver 

to pursue claims against various individuals and entities that assisted LaForte and McElhone in 

executing the diversion scheme, or that received proceeds from the diversion scheme.

Considering the allegations and evidence presented by the Receiver regarding the 

aforementioned violations of the Court’s Orders, it is

ORDERED AND ADJUDGED as follows: 

1. The Motion [ECF No. 1328] is GRANTED. 

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2. Defendants Joseph LaForte and Lisa McElhone shall show cause why they should 

not be held in civil contempt for violating the Orders [ECF Nos. 36 and 141] by filing a written 

response to the Receiver’s Motion on or before August 26, 2022. The Receiver shall file any reply 

on or before September 7, 2022. 

3. The Court will hold an evidentiary hearing on the Motion on Monday, September 

12, 2022 at 11:00 A.M. The hearing will take place in Courtroom 205C of the U.S. Courthouse, 

299 E. Broward Boulevard, Fort Lauderdale, Florida. 

4. The litigation injunction set forth in the Court’s Amended Order Appointing 

Receiver dated August 13, 2020 [ECF No. 141] is hereby lifted to allow the Receiver to pursue 

claims against the following individuals and entities related to their alleged involvement and 

participation in the diversion scheme: James LaForte, Jr. (a/k/a “Jimmy LaForte,” a/k/a “Jimmy 

McElhone,” a/k/a “Jimmy Schillaci”), Tina LaForte, Sage Choi LaForte, Jamie McElhone, Francis 

L. Scarpati (a/k/a “Frank Scarpati”), Peter Padovano, Vincent Bardong, Marc Roddini, Justin 

Scavetti, John R. Mulvihill, III, Alan Redmond, Platinum Rapid Funding Group, Ltd., Financial 

Mutual, Inc., Total Business Strategies, LLC, Straight Line Source, Inc., BG Sky Trade LLC, Bene 

Market LLC, Mac Mrktng, LLC (a/k/a Mac Marketing), F and N Consulting, Inc., and Bushwick 

Beer Garden LLC (a/k/a Bushwick BG LLC). 

DONE AND ORDERED in Fort Lauderdale, Florida, this 30th day of July, 2022. 

_________________________________ 

RODOLFO A. RUIZ II

UNITED STATES DISTRICT JUDGE

Copies to: Counsel of record

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