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Peter Quartararo, age 57 of Glen Cove, pleaded guilty to his charges of grand larceny and more on Friday, Feb. 9, the Nassau County District Attorney announced.
According to the charges against him, Quartararo met with six victims from July 2018 through January 2021 and told them he had access to pre-initial public offering stock (or “pre-IPO”) in companies such as Peloton, WeWork, PetCo, and Airbnb, each for approximately $2 a share.
The broker told the victims that he would sell the shares for them when the companies later went public and give them the profits, less the capital gains taxes.
Under this pretense, each victim gave Quartararo between $14,000 and $202,000 in checks and cash, believing he’d use it to purchase them pre-IPO shares.
However, the victims’ money instead was deposited directly into accounts controlled by Quartararo’s 80-year-old father, Leonard, his 56-year-old business partner, Paul Casella, and another uncharged person.
Quartararo used the money to buy food, travel, and cars — including a 2020 Mercedes Benz SUV and a downpayment for a Maserati. He also took out large cash withdrawals.
The DA’s Office said that, in total, the stock fraud cost the victims nearly half a million dollars combined.
Not only did the SEC confirm that Quartararo never purchased shares from any of the companies, but that he had been barred from operating as a stockbroker by the Financial Industry Regulatory Authority in 2013.
He was arrested in April 2021 and re-arrested in August of that year on additional charges.
“If you are thinking of investing in the stock market,” said DA Anne T. Donnelly, “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.”
Quartararo pleaded guilty to the following charges:
- Second-degree grand larceny, five counts;
- Third-degree grand larceny; and
- Scheme to defraud.
He is due back in court on Friday, June 14, and is expected to receive two-and-a-half to seven-and-a-half years in prison.
Quartararo’s father and business partner both pleaded guilty to criminal facilitation and were each sentenced to conditional discharge.
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