Peter Quartararo, a previously-barred investment broker from Glen Cove, was sentenced to up to seven-and-a-half years in prison for masterminding a stock fraud scheme that defrauded investors of hundreds of thousands of dollars. Quartararo, 57, pleaded guilty to multiple counts of grand larceny and a scheme to defraud in February, admitting to scamming investors with false promises of pre-IPO stock in high-profile companies like Peloton, WeWork, Airbnb, and Petco at prices as low as $2-per-share.
Quartararo’s scheme, which ran from July 2018 to January 2021, involved convincing six victims to invest between $14,000 and $202,000 each, with assurances of lucrative returns once the companies went public. Instead, Quartararo diverted the funds for personal use, including meals, travel, and purchasing luxury vehicles.
Quartararo had been previously barred by Financial Industry Regulatory Authority in 2013.
The money was deposited into accounts controlled by Leonard Quartararo, the defendant’s father; Paul Casella, the defendant’s business partner; and another uncharged individual.
Nassau County District Attorney Anne Donnelly highlighted Quartararo’s history of defrauding investors and the importance of vetting investment opportunities and professionals to avoid such frauds.
“This defendant has a history of defrauding unwitting investors,” said Donnelly. “But if a deal seems too good to be true, it likely is. Instead of making the promised investments, Quartararo used his victim’s money on meals, travel, and even to place a down payment on a Maserati. ”
Despite promises, no shares of the pre-IPO stock were ever purchased, as confirmed by the SEC.
Quartararo was arrested in April 2021 and re-arrested in August 2021 on additional charges. Co-defendants Casella and Leonard Quartararo received conditional discharges for their roles in the scheme.
The case was prosecuted by Senior Investigative Counsel Heidi Bausk, with assistance from the NCDA’s Civil Forfeiture Unit and the SEC.
