Nassau County District Attorney Anne T. Donnelly announced that a barred investment broker from Glen Cove pleaded guilty today to Grand Larceny and other related charges for defrauding six investors in a half-million-dollar stock fraud scheme, leading them to believe they were investing in pre-initial public offering stock for several high-profile companies.
Peter Quartararo, 57, of Glen Cove, pleaded guilty before Judge John Zoll to five counts of Grand Larceny in the Second Degree (a C felony); one count of Grand Larceny in the Third Degree (a D felony); and one count of Scheme to Defraud in the First Degree (an E felony). The defendant is due back in court on June 14, 2024. He is expected to receive 2-1/2 to 7-1/2 years in prison when he is sentenced. NCDA recommended a sentence of 4 to 12 years in prison.
“Peter Quartararo swindled investors, promising them pre-IPO stock in fast-growing companies that seemed too good to be true,” said DA Donnelly. “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. 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. Taking these steps can help safeguard your money and help you to avoid fraud.”
DA Donnelly said beginning in July 2018 and continuing through January of 2021, Peter Quartararo met with six victims and told them that he had access to “pre-IPO” or pre-initial public offering stock in the companies Peloton, WeWork, Airbnb and Petco for approximately $2.00 a share. Quartararo told them that when the companies later went public, he would sell the shares and give the profits to the victims, less capital gains taxes.
Each victim gave Quartararo between $14,000 and $202,000 in checks and cash with the understanding that the funds would be used to purchase the pre-IPO shares. Instead, the investigation revealed that the defendant never purchased any shares of stock in the pre-IPO companies represented on the victims’ behalf and instead, the victims’ 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.
These funds were then used by the defendant to purchase food, travel, and vehicles, including a 2020 Mercedes Benz SUV, and used as the down payment on Peter Quartararo’s Maserati automobile. Several large cash withdrawals were also made from a bank account of Leonard Quartararo.
The SEC has confirmed that no shares of IPO stock in Peloton, WeWork, Airbnb or Petco were ever purchased by the defendant.
Peter Quartararo was previously barred from operating as a stockbroker in March 2013 by the Financial Industry Regulatory Authority (FinRA).
Quartararo was arrested by NCDA Detective Investigators in April 2021 and re-arrested in August 2021 on additional charges.
Co-defendant Paul Casella, 56, of East Meadow, pleaded guilty to Criminal Facilitation in the Fourth Degree on December 14, 2022, and was sentenced to a Conditional Discharge.
Co-defendant Leonard Quartararo, 80, of Staten Island, pleaded guilty to Criminal Facilitation in the Fourth Degree on July 22, 2021, and was sentenced to a Conditional Discharge.
The case is being prosecuted by Senior Investigative Counsel Heidi Bausk of the Financial Crimes Bureau. The NCDA’s Civil Forfeiture Unit has assisted in identifying any available assets. Quartararo is represented by Gerard Donnelly, Esq.
The Nassau County District Attorney wishes to thank the United States Securities and Exchange Commission for bringing this case to our attention.
