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IN THE UNITED STATES DISTRICT COURT

FOR THE 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.

______________________________________/

RECEIVER’S AND LISA MCELHONE AND JOSEPH LAFORTE’S WITNESS LISTS 

AND EXHIBIT LISTS FOR CONTEMPT HEARING ON SEPTEMBER 12, 2022

Ryan K. Stumphauzer, Esq., Court-Appointed Receiver (“Receiver”) of the Receivership 

Entities, and Defendants Lisa McElhone (“McElhone”) and Joseph LaForte (“LaForte”), by and 

through their respective undersigned counsel, pursuant to this Court’s Paperless Order dated 

September 8, 2022 [ECF No. 1399], hereby file their witness lists and exhibit lists for the contempt 

hearing scheduled for September 12, 2022, at 11:00 a.m., on the Receiver’s Motion for an Order 

to Show Cause Why Defendants Joseph LaForte and Lisa McElhone Should Not Be Held in 

Contempt [ECF No. 1328] (the “Motion”)

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I. Witness Lists

A. Receiver’s Witness List1

1. Receiver, Ryan K. Stumphauzer, Esq. (In Person)

a. The Receiver will testify about (i) his investigation into certain merchants that 

owed balances under their merchant cash advance agreements with the 

Receivership Entities but made payments to other companies and (ii) his review 

of bank records and other information he obtained through the issuance of 

subpoenas.

b. Estimated Time for Direct and Cross Examination: 1 hour and 45 minutes.

2. John Mulvihill (In Person)

a. Mr. Mulivhill is expected to testify about transactions involving the payment of 

money into the bank account of his company, BG Sky Trade, LLC, and transfers 

out of that account.

b. Estimated Time for Direct and Cross Examination: 1 hour and 15 minutes.

3. Francis Scarpati (By Deposition)

2

a. Mr. Scarpati will testify about his involvement in collecting payments from 

merchants of the Receivership Entities and the transfer of those funds to Mr. 

LaForte and Ms. McElhone’s attorneys and other professionals in this case, as 

well as their family members and associates. 

b. Estimated Time for Direct and Cross Examination: 10 minutes.

4. Joseph LaForte (By Proffer / Stipulation)

a. The Receiver will proffer specific questions he intended to ask of Mr. LaForte 

at the hearing, and counsel for Mr. LaForte will stipulate that Mr. LaForte 

1 The Receiver has served subpoenas on James “Jimmy” LaForte and Sage Choi LaForte

commanding them to appear and testify at the hearing, but understands that neither of these 

witnesses are likely to appear. In the event they do appear, the Receiver intends to question them 

about their involvement in receiving and/or transferring funds that are the subject of the Motion.

2 The Receiver does not intend to read the deposition transcript into the record. Rather, the 

Receiver intends to provide the Court with a copy of the transcript and identify those portions that 

are relevant to the Motion.

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would have asserted his Fifth Amendment Rights and refused to provide a 

substantive response to those questions.

b. Estimated Time for Direct and Cross Examination: 10 minutes.

5. Lisa McElhone (By Proffer / Stipulation)

a. The Receiver will proffer specific questions he intended to ask of Ms. 

McElhone at the hearing, and counsel for Ms. McElhone will stipulate that Ms. 

McElhone would have asserted his Fifth Amendment Rights and refused to 

provide a substantive response to those questions.

b. Estimated Time for Direct and Cross Examination: 10 minutes.

B. Lisa McElhone and Joseph LaForte’s Witness List3,4

1. Francis Scarpati (By Deposition and Declaration)

a. Mr. Scarpati will testify regarding a loan he made to James LaForte and 

payments he made on James LaForte’s behalf as part of that loan, his 

employment with CFS and unilateral efforts to collect from CFS clients before 

the Receivership was expanded over CFS, and other matters which are the 

subject of his Declaration.

b. Estimated Time for Direct and Cross Examination: 10 minutes.

2. James LaForte (by Declaration)

a. James LaForte will testify regarding the matters which are the subject of his 

Declaration.

b. Estimated Time for Direct and Cross Examination: 5 minutes

3 McElhone and LaForte reserve the right to call any witness which the Receiver calls on direct to 

the extent necessary to offer relevant testimony that the witness is competent to proffer which may 

go beyond the scope of cross-examination. 

4 The Receiver objects to the admissibility of the testimony of any witness “by declaration.” 

Specifically, the Receiver objects to the admissibility of the Declaration of James LaForte and the 

Declaration of Vincent Bardong, given that these declarations are hearsay and the statements 

contained therein are not subject to cross examination. As for Francis Scarpati, the Receiver had 

an opportunity to examine this witness at a deposition regarding his declaration and, therefore, the 

Receiver does not object to the admissibility of this declaration for the purpose of allowing the 

Court to consider the statements in declaration in the context of his deposition testimony.

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3. Vincent Bardong (By Declaration)

a. Mr. Bardong will testify regarding the matters which are the subject of his 

Declaration.

b. Estimated Time for Direct and Cross Examination: 5 minutes.

II. Exhibit Lists5

A. Receiver’s Exhibit List

No. Description

1 Bank of America - Records Custodian Declaration – Financial Mutual Account x8062

2 Bank of America - Account Statement - Financial Mutual Account x8062

3 Bank of America - Records Custodian Declaration – Financial Mutual Account x8758

4 Bank of America - Account Statement - Financial Mutual Account x8758

5 Bank of America - Records Custodian Declaration – Platinum Rapid Account x0184

6 Bank of America – Account Statement – Platinum Rapid Account x0184

6a Bank of America – Wire Details – Platinum Rapid Account x0184

7 Fifth Third Bank - Records Custodian Declaration – Platinum Rapid Account x2104

8 Fifth Third Bank – Account Statement – Platinum Rapid Account x2104

9 Fifth Third Bank – Account Statement – Platinum Rapid Account x2112

10 Fifth Third Bank – Account Statement – Platinum Rapid Account x2120

11a Fifth Third Bank – ACH Data – Platinum Rapid Account x2104

11b Fifth Third Bank – ACH Data – Platinum Rapid Account x2112

11c Fifth Third Bank – ACH Data – Platinum Rapid Account x2120

12 Fifth Third Bank – Wire Details – Platinum Rapid (All Accounts)

13 Email Between Tyson Hoff and “Terry Lane” at CFS dated May 4, 2021

14 Letter on Platinum Rapid Letterhead to Alpero General Contracting

15 Wire Transfer from Lee Roofing to Financial Mutual

16 Summary of Payments from CFS Merchants to Financial Mutual / Platinum Rapid

17 TD Bank - Records Custodian Declaration – BG SKY Trade

18 TD Bank – Account Statement – BG SKY Trade Account x4771

18a TD Bank – Wire Details – BG SKY Trade Account x4771

19a Summary of Payments from B&T and Lifeguard to BG Sky Trade

19b Summary of Payments from Bene Market to BG Sky Trade

19c Summary of Payments from Bene Market to Financial Mutual

20 BCB - Records Custodian Declaration – Bushwick

21 BCB – Account Statement – Bushwick Account x0608

21a BCB – Checks – Bushwick Account x0608

22 BCB – Account Statement – Bushwick Account x0616

5 The parties reserve the right to object to the admissibility of the exhibits listed on the opposing 

party’s exhibit list.

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22a BCB – Checks – Bushwick Account x0616

22b BCB –Incoming Wires – Bushwick Account x0616

22c BCB –Incoming Wires 2 – Bushwick Account x0616

22d BCB – Outgoing Wires – Bushwick Account x0616

22e BCB – Outgoing Wires 2 – Bushwick Account x0616

23a Summary of Funds Distributed from Financial Mutual

23b Summary of Funds Distributed from BG Sky Trade

23c Summary of Funds Distributed from Bushwick BG

24 Deposition Transcript of Frank Scarpati and exhibits thereto

25 Excerpts of Text Messages (John Mulvihill and Frank Scarpati)

26 Excerpts of Text Messages (John Mulvihill and James “Jimmy” LaForte)

B. Lisa McElhone and Joseph LaForte’s Exhibit List

No. Description

27 Declaration of James LaForte

28 Declaration of Francis Scarpati

29 Deposition Transcript of Francis Scarpati and Exhibit B to his Deposition

30 Declaration of Vincent Bardong

31 Firstrust Bank – Account Statements - CFS Account x3794

32 Firstrust Bank – Account Statements - CFS Account x3760

33 Florida Division of Corporations Entity Details for Lee Roofing LLC and Alpero 

General Contracting and Roofing Systems LLC 

Dated: September 10, 2022 Respectfully Submitted, 

KOPELOWITZ OSTROW

FERGUSON WEISELBERG GILBERT

One W. Las Olas Blvd., Suite 500

Fort Lauderdale, Florida 33301

Tel: (954) 525-4100

By: /s/ David L. Ferguson

DAVID L. FERGUSON

Florida Bar Number: 0981737

Ferguson@kolawyers.com

Attorneys for Defendant Joseph W. LaForte

STUMPHAUZER FOSLID 

SLOMAN ROSS & KOLAYA, PLLC 

Two South Biscayne Blvd., Suite 1600 

Miami, FL 33131 

Telephone: (305) 614-1400 

Facsimile: (305) 614-1425 

By: /s/ Timothy A. Kolaya

TIMOTHY A. KOLAYA 

Florida Bar No. 056140 

tkolaya@sfslaw.com

Co-Counsel for Receiver 

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KAPLAN ZEENA LLP

2 South Biscayne Boulevard, Suite 3050

Miami, Florida 33131

Telephone: (305) 530-0800

Facsimile: (305) 530-0801

By: /s/ James M. Kaplan

JAMES M. KAPLAN

Florida Bar No.: 921040

james.kaplan@kaplanzeena.com

elizabeth.salom@kaplanzeena.com

service@kaplanzeena.com

NOAH E. SNYDER

Florida Bar No.: 107415

noah.snyder@kaplanzeena.com

maria.escobales@kaplanzeena.com

julie.valdes@kaplanzeena.com

Attorneys for Defendant Lisa McElhone

PIETRAGALLO GORDON ALFANO 

BOSICK & RASPANTI, LLP 

1818 Market Street, Suite 3402 

Philadelphia, PA 19103 

Telephone: (215) 320-6200 

Facsimile: (215) 981-0082 

By: /s/ Gaetan J. Alfano 

GAETAN J. ALFANO 

Pennsylvania Bar No. 32971 

(Admitted Pro Hac Vice) 

GJA@Pietragallo.com 

Co-Counsel for Receiver

LAW OFFICES OF ALAN S. FUTERFAS

565 Fifth Avenue, 7th Floor

New York, New York 10017

Telephone: 212-684-8400

By: /s/ Alan S. Futerfas

ALAN S. FUTERFAS

Admitted Pro Hac Vice

asfuterfas@futerfaslaw.com

Attorneys for Defendant Lisa McElhone

CERTIFICATE OF SERVICE

I HEREBY CERTIFY that on September 10, 2022, I electronically filed the foregoing 

document with the clerk of the Court using CM/ECF. I also certify that the foregoing document is 

being served this day on counsel of record via transmission of Notices of Electronic Filing 

generated by CM/ECF. 

/s/ Timothy A. Kolaya 

TIMOTHY A. KOLAYA

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