Barred LI Investment Broker, Partner Charged In Fraud Scheme: DA

GLEN COVE, NY — A barred investment broker from Long island and his business partner are accused of stealing over $400,000 from investors who believed they were buying pre-initial public offering stock in high-profile companies like Peloton, Airbnb, and WeWork, Nassau County District Attorney Madeline Singas said.

Singas said the pair stole $436,000 from four investors who believed they were investing in “pre-initial public offering stock” for the companies, and they spent the funds on travel and personal luxury items.

Peter Quartararo, a 56-year-old Glen Cove resident barred from operating as a stock broker in March 2013 by the Financial Industry Regulatory Authority, has been charged with five counts of second-degree grand larceny, a felony, Singas’ office said. He was additionally charged with one count of third-degree grand larceny, one count of fourth-degree conspiracy, and one count of first-degree scheme to defraud, all felonies.

Paul Casella, 54, of East Meadow, is charged with two counts of second-degree grand larceny, and one count of fourth-degree conspiracy.

Singas said the pair “allegedly conned investors to give them hundreds of thousands of dollars promising high returns from prominent companies, but instead they pocketed the funds to support their lavish lifestyles.”

“Investment frauds cost innocent Americans billions of dollars each year and I encourage every investor to verify the credentials and licenses of any financial professional they work with and to report any suspicious activity to my office,” she said.

Singas said that starting in July 2019, Quartararo met with four people and told them he had access to “pre-IPO or pre-initial public offering stock” for “Peloton, WeWork, and/or Airbnb for about [two dollars] a share.” He told them that when the companies went public later, he would sell the shares and give the profits to them without the capital gains taxes, she said.

Each person gave Quartararo between $72,000 and $200,000 in checks believing the funds would be used to purchase the pre-IPO shares, but the SEC confirmed that the stock shares were not purchased, Singas said.

Instead, the checks were deposited into accounts controlled by Leonard Quartararo, Peter Quartararo’s father, and Casella, according to Singas.

The funds were then used to purchase food, travel, and cars, including a 2020 Mercedes Benz SUV, and as the down payment on Peter Quartararo’s Maserati automobile, she said. Several large cash withdrawals were also made by Leonard Quartararo, according to Singas.

Leonard Quartararo is expected to turn himself in to authorities, a spokesman for Singas’ office said.

The case was referred to Singas’ office by the United States Securities and Exchange Commission earlier this year, she said. Five court-ordered search warrants were executed in connection with the investigation, according to Singas.

Quartararo’s attorney, Gerard Donnelly of Hauppauge, could not be immediately reached for comment.

In a statement to Patch, defense attorney, Joseph Murray of Kew Gardens, said Casella “maintains his innocence and we look forward to litigating this in court.”

If convicted on the top count, Quartararo faces the maximum sentence of five-to-15 years in prison. Casella faces the maximum sentence of five-to-15 years in prison.

Singas’ office urged anyone who believes they were the victim of an investment fraud perpetrated by the Quartararos or Casella to contact the Financial Crimes Bureau at 516-571-2149 for assistance.