A New York broker who has been barred by the Financial Industry Regulatory Authority and charged in April by the Securities and Exchange Commission with defrauding four investors out of $436,000 has again been arrested for a similar fraud scheme, according to the Nassau County District Attorney Office in Mineola, N.Y..
This time, Peter R Quartararo, 56, of Glen Cove, Long Island, duped two investors into giving him more than $80,000 they believed was being invested in shares of DoorDash, Airbnb and Petco, the release said.
He was arraigned and charged yesterday with grand larceny in the second degree, a C felony; and grand larceny in the third degree, according to the release.
In April, he was charged with five counts of grand larceny in the second degree, a C felony; one count of grand larceny in the third degree, one count of conspiracy in the fourth degree, an E felony; and one count of scheming to defraud in the first degree, an E felony.
According to the release from the District Attorney's Office, Quartararo met his first victim in August 2020 at a tenants barbeque at the complex where he lived. He claimed that he was an investor and a financial advisor and allegedly told the victim that he possessed pre-initial public offering shares of DoorDash and Airbnb at $2 a share and that he would sell the victim some of his shares. The victim gave Quartararo $11,500 in cash and later wired to Quartararo an additional $58,000 in exchange for what he believed to be pre-IPO shares of Airbnb.
Quartararo used a similar story on a second victim whom he met at their Glen Cove apartment building in June 2020, the release said. He allegedly told that victim that he could get him stocks “on the ground floor” at $1.65 a share. The release said Quartararo collected $14,000 in cash from the victim in January in exchange for what the victim believed were shares of Petco at $1.65 each.
Quartararo never purchased any shares on behalf of the victims and pocketed the money, the District Attorney’s Office said.
In the first incident, Quartararo and a co-conspirator, Paul Casella, 54 of East Meadow, allegedly robbed four investors of $463,000, beginning in July 2019, the release said. Both were charged in April with grand larceny and other charges for duping the investors into believing that they were investing in pre-IPO stock for several high-profile companies, including Airbnb, WeWork and Peloton.
Quartararo, the release said, collected between $72,000 and $200,000 in checks from each victim, which he instead deposited into accounts controlled by his father, Leonard Quartararo, and Casella, his business partner. The release said the funds were then used to purchase food, travel, and vehicles, including a 2020 Mercedes Benz SUV, and as the down payment on Quartararo’s Maserati vehicle. Leonard Quartararo also made several large cash withdrawals, the release said.
“This defendant has now been arrested twice this year for allegedly defrauding multiple victims with the same empty elevator pitch, stealing more than $500,000 in total from his victims and never delivering on his promises,” Acting District Attorney Joyce A. Smith said in a statement. “This case further highlights the need for investors to diligently review the credentials and licenses of the financial professionals they work with to ensure they are credible and operating with integrity.”