A barred investment broker from Glen Cove pleaded guilty to grand larceny and other fraud charges on Feb. 9 after defrauding investors with a half-million dollar stock scheme, deceiving them to believe they were purchasing pre-IPO stock for well-known companies, according to the Nassau County District Attorney’s Office.
Peter Quartararo, 57, pleaded guilty to five counts of second-degree grand larceny, one count of third-degree grand larceny and one count of first-degree scheme to defraud.
“Peter Quartararo swindled investors, promising them pre-IPO stock in fast-growing companies that seemed too good to be true,” District Attorney Anne Donnelly said. “Instead of celebrating financial success, these investors lost hundreds of thousands of dollars to this defendant, who spent their money on food, traveling and a sports car.”
Quartararo, who had been barred from trading by the Financial Industry Regulatory Authority since 2013, is expected to receive a 2 ½ to 7 ½ years prison sentence, according to the DA’s office, while the Nassau County DA recommends 4 to 12 years.
Donnelly said that from July 2018 through January 2021, Quartararo convinced six victims that he had access to pre-initial public offering stock in the companies Peloton, WeWork, Airbnb and Petco for approximately $2.00 a share. She said he then told the victims he would sell the shares and give the profits back after the companies became public, receiving between $14,000 and $202,000 in checks and cash from each victim.
After an investigation, the U.S. Securities and Exchange Commission, or SEC, confirmed that there were no records of Quartararo purchasing any shares of IPO stock in these high-profile companies.
“If you are thinking of investing in the stock market, make sure you research investment opportunities thoroughly and conduct background checks on any investment professionals before entrusting your money to them,” Donnelly said. “Taking these steps can help safeguard your money and help you to avoid fraud.”
In addition to spending the fortune on personal indulgences, including a 2020 Mercedes Benz SUV and Maserati, large sums of cash were also deposited and withdrawn from accounts managed by Leonard Quartararo, Peter Quartararo’s father, Paul Casella, Peter Quartararo’s business partner, and another uncharged individual, the DA’s office said.
Quartararo was arrested by Nassau County District Attorney detective investigators in April and August of 2021.
Previously, co-defendants Leonard Quartararo, 80 from Staten Island, and Casella, 56 from East Meadow, pleaded guilty to fourth-degree criminal facilitation in relation to the stock fraud case.
Leonard Quartararo received a Conditional Discharge in July 2022, while Casella received the same sentence in December 2022.
