Glen Cove Man Pleads Guilty To $500K Stock Fraud Scheme: Prosecutors

MINEOLA, NY — A barred investment broker from Glen Cove pleaded guilty on Friday to charges of defrauding investors in a $500,000 stock scheme, prosecutors said.

Peter Quartararo, 57, faces five counts of second-degree grand larceny and a count of first-degree scheme to defraud.

"Peter Quartararo swindled investors, promising them pre-IPO stock in fast-growing companies that seemed too good to be true," said Nassau County District Attorney Anne 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."

Donnelly said 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.

He told them that when the companies later went public, he would sell the shares and give the profits to the victims, Donnelly said.

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 investigation revealed that Quartararo never purchased any shares of stock in the pre-IPO companies, and instead, the victims’ checks and cash were deposited into accounts controlled by Leonard Quartararo, Peter Quartararo’s father, Donnelly said.

"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," Donnelly said. "Taking these steps can help safeguard your money and help you to avoid fraud."

The defendant is due back in court on June 14. He is expected to receive 2-1/2 to 7-1/2 years in prison when he is sentenced, prosecutors said.