Par Funding Sanctioned by New Jersey Over High-Yield Notes
- New Jersey Bureau of Securities issues cease-and-desist order
- Par raised money from investors without proper registration
New Jersey Attorney General Gurbir Grewal
Photographer: Julio Cortez/APThis article is for subscribers only.
Par Funding, the merchant cash-advance company that sent an intimidating debt collector to pay surprise visits to delinquent borrowers, was ordered to stop raising money from investors in New Jersey.
The New Jersey Bureau of Securities issued a cease-and-desist order on Thursday to Par, a Philadelphia company that lends money at high interest rates to small businesses. The regulator said Par has been violating state securities law by selling high-yield notes to investors without proper registration.