Investor Alert: Complete Business Solutions Group Inc. (d/b/a Par Funding) 

Investigating Potential claims involving Complete Business Solutions Group Inc.  

The White Law Group is investigating potential securities fraud claims involving Complete Business Solutions Group Inc (d/b/a Par Funding).

On June 15th, 2022, The SEC has charged A.G. Morgan Financial Advisors, a Massapequa, N.Y.-based financial advisory firm, and its Chief Compliance Officer, James McArthur, with securities fraud related to a $500 million unregistered fraudulent securities offering tied to Par Funding, a lending company based in Palm Beach Gardens, Fla.

According to the SEC, A.G. Morgan and McArthur allegedly unlawfully offered and sold securities through Par Funding without disclosing critical conflicts of interest. Specifically, A.G. Morgan had purportedly borrowed $750,000 from Par Funding in 2016, a debt that remained unpaid while the firm and its executives reportedly solicited investments in Par Funding’s promissory notes. From August 2017 through July 2020, they allegedly raised over $75 million from more than 200 investors, earning more than $7 million in compensation from Par Funding.

Despite assuring investors that the promissory notes—offering around 12% interest with principal repayment after 12 months—were safe, A.G. Morgan and McArthur purportedly failed to disclose the firm’s debt to Par Funding and McArthur’s role in promoting the unregistered securities. The SEC was seeking the disgorgement of any ill-gotten gains from A.G. Morgan and McArthur.

Fraudulent Scheme

Prior to that, in July 2020, the SEC filed an emergency action against Complete Business Solutions Group Inc., to halt an alleged fraudulent scheme that raised nearly $500 million from around 1,200 investors nationwide. The SEC obtained a temporary restraining order and asset freeze against Par Funding, its two executives and related entities.

According to the SEC’s complaint, the two executives reportedly controlled Par Funding and orchestrated the scheme through unregistered securities offerings. They used investor funds to issue high-interest loans—some exceeding 400%—to small businesses. The SEC alleges they misled investors about Par Funding’s operations, the use of funds, and one of the executive’s criminal history. A network of unregistered sales agents and affiliated companies also participated in the fraudulent activities.

The U.S. District Court for the Southern District of Florida granted the SEC’s request for emergency relief, including freezing assets, appointing a receiver for 11 entity defendants, and scheduling a hearing to consider a preliminary injunction. The SEC charged the defendants with violations of antifraud and securities registration provisions under federal securities laws and seeks disgorgement of ill-gotten gains, prejudgment interest, and civil penalties.

How to Recover Investment Losses  

The White Law Group is investigating potential claims involving brokerage firms who may have improperly recommended Complete Business Solutions Group Inc. to investors.  

Brokerage firms have two main duties in recommending investments.  First, brokerage firms are required to perform adequate due diligence on any product they recommend. Second, brokerage firms are required to ensure that all recommendations made are suitable for their client in light of the client’s age, investment experience, net worth, income, and investment objectives.   

FINRA Dispute Resolution is an arbitration venue for investors with claims against their brokerage firm or financial professional. ?It provides investors with an opportunity to attempt to recoup their investment losses without filing such claims in court.   

If you invested in Complete Business Solutions Group Inc. (d/b/a Par Funding), and would like to speak with a securities attorney about your options, please call The White Law Group at 888-637-5510 for a free consultation.    

The White Law Group, LLC is a national securities fraud, securities arbitration, investor protection, and securities regulation/compliance law firm with offices in Chicago, Illinois and Seattle, Washington.    

For more information on The White Law Group and its representation of investors in FINRA arbitration claims, visit https://whitesecuritieslaw.com.