MINEOLA, NY – Nassau County District Attorney Anne T. Donnelly announced today that a former investment broker from Glen Cove has been sentenced to up to seven-and-a-half years in prison for a major investment fraud scheme. Peter Quartararo, 57, faced charges for luring investors with the false promise of lucrative pre-initial public offering stocks.
Quartararo pleaded guilty to multiple counts of grand larceny and a scheme to defraud before Judge John Zoll on February 9. He was sentenced today to a prison term ranging from two-and-a-half to seven-and-a-half years, although prosecutors had sought a longer sentence of four to twelve years.
The fraudulent operation, running from July 2018 through January 2021, involved Quartararo convincing investors to buy into what he claimed were pre-IPO shares of well-known companies like Peloton, WeWork, Airbnb, and Petco at about $2.00 per share. He promised substantial profits once the companies went public.
Investors handed over sums ranging from $14,000 to $202,000, believing their money would secure these shares. However, the funds were instead diverted to accounts controlled by Quartararo’s father, Leonard, his business partner Paul Casella, and another individual not charged in the case. These funds were used for personal expenses including luxury cars and travel.
The Securities and Exchange Commission confirmed that Quartararo never purchased the promised IPO shares. Previously barred by the Financial Industry Regulatory Authority in 2013, Quartararo’s recent activities have led to his current incarceration.
Co-defendants in the scheme, Paul Casella and Leonard Quartararo, have both pleaded guilty to Criminal Facilitation and received sentences of Conditional Discharge.
