Nassau Broker Bilks $500K In IPO Fraud; Buys Sports Car: DA

MINEOLA, NY — A barred investment broker from Glen Cove was indicted on Thursday on charges stemming from stealing more than $500,000 from clients, Nassau County District Attorney Anne Donnelly announced.

Peter Quartararo, 57, was arraigned and faces charges that include five counts of second-degree grand larceny and first-degree scheme to defraud.

If convicted on the top charge, the maximum sentence is five to 15 years in prison. Quartararo pleaded not guilty and was released on his own recognizance. He is due back in court on April 3.

"This defendant allegedly tricked investors into believing they were getting in on the ground floor on high-profile companies that were going public. Instead, investors lost hundreds of thousands of dollars in funds that the defendant allegedly then used on luxury purchases, including a sports car," Donnelly said. "Investing in the stock market always comes with risk, but investors should never have to worry that the financial professionals they are trusting with their money will steal from them."

Beginning in July 2018 and continuing 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 the companies Peloton, WeWork, Airbnb and Petco for approximately $2.00 a share, according to Donnelly.

The SEC has confirmed that no shares of IPO stock in Peloton, WeWork, Airbnb or Petco were ever purchased by Quartararo.

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. However, the investigation revealed, the victims’ checks and cash were deposited into accounts controlled by Leonard Quartararo, Peter Quartararo’s father; Paul Casella, Peter Quartararo’s business partner; and another uncharged individual.

These funds were then allegedly 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, Donnelly said.

Co-defendant Paul Casella, 56, of East Meadow, pleaded guilty to criminal facilitation in December, and was sentenced to a conditional discharge.

Co-defendant Leonard Quartararo, 80, of Staten Island, pleaded guilty to criminal facilitation in July 2021, and was sentenced to a conditional discharge.

If anyone believes they were a victim of investment fraud connected to the three men, they should contact the Nassau County DA's Office Financial Crimes Bureau at 516-571-2149.