In Mineola, a banned investment broker is sentenced

A banned investment banker was convicted Friday in a securities fraud case, officials said.

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

“This defendant has a history of defrauding unwitting investors. As part of the current scheme, Quartararo defrauded victims out of hundreds of thousands of dollars with false promises to get them coveted pre-IPO shares in highly sought-after companies,” Donnelly said in a press release regarding sentence.

“But if a deal seems too good to be true, it probably is,” she added. “Instead of making the promised investments, Quartararo used his victim's money for meals, trips and even a down payment on a Maserati. Having a trusted investment professional is essential if you are considering going public. Taking steps to properly vet investment opportunities and those who offer them to you can help you avoid potential fraud and significant losses.

Donnelly said that from July 2018 through January 2021, Quartararo met with six victims and told them he had access to “pre-IPO” or pre-public offering shares of Peloton, WeWork, Airbnb and Petco for about $2. sharing. Quartararo told them that when the companies went public, he would sell the shares and return 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 prosecutor'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 prosecutor'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 a 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 prosecutor's office.

The SEC confirmed that no IPO stock in Peloton, WeWork, Airbnb or Petco was ever purchased by the defendant, the prosecutor's office said.

Peter Quartararo was already banned from operating as a securities broker in March 2013 by the Financial Sector 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 parole. Leonard Quartararo, of Staten Island, pleaded guilty to fourth-degree criminal facilitation in 2021 and was sentenced to parole.