In Mineola, a barred investment broker is sentenced

A barred investment banker was sentenced Friday in connection with a stock fraud scheme, officials said.

Peter Quartararo, of Glen Cove, had pleaded guilty in February to first- and second-degree grand larceny and other charges. Quartararo was sentenced to two-and-a-half to seven-and-a-half years in prison, according to Nassau County District Attorney Anne Donnelly.

“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,” Donnelly said in a news release about the sentencing.

“But if a deal seems too good to be true, it likely is,” she added. “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.”

Donnelly said that since July of 2018 and through January of 2021, Quartararo met with six victims and told them that he had access to “pre-IPO” or pre-initial public offering stock in Peloton, WeWork, Airbnb, and Petco for approximately $2 a share. Quartararo told 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, the DA’s office said.

Instead, the funds were deposited into accounts controlled by Leonard Quartararo, the defendant’s father; Paul Casella, the defendant’s business partner; and another uncharged individual, the DA’s office said.

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, according to the DA’s office.

The SEC confirmed that no shares of IPO stock in Peloton, WeWork, Airbnb or Petco were ever purchased by the defendant, the DA’s office said.

Peter Quartararo was previously barred from operating as a stockbroker in March 2013 by the Financial Industry Regulatory Authority. He was arrested by NCDA Detective Investigators in April 2021 and re-arrested in August 2021 on additional charges.

Paul Casella, of East Meadow, pleaded guilty to fourth-degree criminal facilitation in 2022, and was sentenced to a conditional discharge. Leonard Quartararo, of Staten Island, pleaded guilty to fourth-degree criminal facilitation in 2021, and was sentenced to a conditional discharge.

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