A barred investment broker from Glen Cove has been indicted on charges related to a stock fraud scheme of $520,000 collected from investors who believed they were investing in several high-profile companies including Peloton, WeWork, Airbnb & Petco, according to a press release from Nassau County’s district attorney.
Six investors believed they were investing in pre-initial public offering, pre-IPO, stock for these companies, but Peter Quartararo, 57, was allegedly using the money for personal luxury items and travel. These items included a 2020 Mercedes Benz SUV, and the money contributed to a down payment on his Maserati.
Quartararo was charged during an arraignment on Thursday with five counts of grand larceny in the second degree, one count of grand larceny in the third degree and one count of scheme to defraud in the first degree.
If convicted of the top count, Quartararo may face the maximum sentence of five to 15 years in prison.
He pleaded not guilty and was released without having to post bail. His next court date is set for April 3.
Quartararo had previously been barred from working as a stockbroker in March 2013 by the Financial Industry Regulatory Authority (FinRA).
“This defendant allegedly tricked investors into believing they were getting in on the ground floor on high-profile companies that were going public,” Nassau County District Attorney Anne Donnelly said. “Instead, investors lost hundreds of thousands of dollars in funds that the defendant allegedly then used on luxury purchases, including a sports car. Investing in the stock market always comes with risk, but investors should never have to worry that the financial professionals they are trusting with their money will steal from them.”
Donnelly said in the press release that the fraudulent scheme started in July 2018 and continued through January 2021.
During those 2 ½ years, Quartararo met with the six victims and proposed to them pre-IPO stock in the high-profile companies for approximately $2 a share. He told them he would sell the shares and give the profits to the victims when the companies went public.
The amount each victim provided to Quartararo ranged from $14,000 to $202,000 in cash and checks to purchase the alleged pre-IPO shares.
The district attorney’s investigation found that Quartararo did not purchase any shares of stock in the pre-IPO companies. Instead, the checks and cash were deposited into accounts controlled by Leonard Quartararo, Peter Quartararo’s father, Paul Casella, Peter Quartararo’s business partner, and another uncharged individual.
The SEC confirmed that no shares of IPO stock in Peloton, WeWork, Airbnb or Petco were ever purchased by the defendant, according to the district attorney’s press release.
Quartararo was arrested by Nassau County district attorney detective investigators in April 2021 and re-arrested in August 2021 on additional charges.
Co-defendant of East Meadow Paul Casella, pleaded guilty to criminal facilitation in the fourth degree on Dec. 14. He was sentenced to a conditional discharge.
Co-defendant Leonard Quartararo, 80, pleaded guilty to criminal facilitation in the fourth degree on July 22, 2021. He was also sentenced to a conditional discharge.
If you believe you were the victim of an investment fraud perpetrated by Peter Quartararo, Paul Casella or Leonard Quartararo, the Nassau County District Attorney’s Office asks that you contact their Financial Crimes Bureau at 516-571-2149.
