Barred Investment Broker Gets Up to 7-1/2 Years in Prison for Stock Fraud Scheme

A barred investment broker from Glen Cove was sentenced to up to seven-and-a-half years in prison for defrauding multiple investors who believed they were investing their funds in pre-initial public offering stock for several high-profile companies.

Peter Quartararo, 57, pleaded guilty on February 9, 2024, before Judge John Zoll to five counts of second-degree grand larceny (a C felony); one count of third-degree grand larceny (a D felony); and one count of scheme to defraud in the first degree (an E felony). On June 13, 2024, he was sentenced today to 2-1/2 to 7-1/2 years in prison. The Nassau County District Attorney’s Office recommended a sentence of 4 to 12 years in prison.

Beginning in July 2018 and continuing through January 2021, 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 assured them that, when the companies later went public, he would sell the shares and give the profits to the victims.
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 victims’ checks and cash were deposited into accounts controlled by Leonard Quartararo, the defendant’s father; Paul Casella, the defendant’s business partner; and another uncharged individual.

Peter Quartararo then used the funds to buy 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 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.

Casella, 56, of East Meadow, pleaded guilty to fourth-degree criminal facilitation on December 14, 2022, and was sentenced to a conditional discharge.

Leonard Quartararo, 80, of Staten Island, pleaded guilty to fourth-degree criminal facilitation on July 22, 2021, and was sentenced to a conditional discharge.

“This defendant has a history of defrauding unwitting investors. In the current scheme, Quartararo scammed victims out of hundreds of thousands of dollars with false promises of getting them coveted pre-IPO stock in highly sought-after companies,” said Nassau County DA Anne 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. Having a trusted investment professional is essential if you are planning to wade into the stock market. Taking steps to properly vet investment opportunities and those who are bringing them to you can save you from potential fraud and significant losses.”