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Regulation and Compliance > Litigation

Barred Long Island Broker Arrested Again for Defrauding Investors

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What You Need to Know

  • A barred Long Island broker was arrested for the second time this year due to alleged investment fraud crimes.
  • He was arraigned Tuesday on charges he stole more than $80,000 from clients.
  • His latest victims thought they were investing in shares of Airbnb, DoorDash and Petco, the acting Nassau County DA says.

A Long Island broker who was barred by the Financial Industry Regulatory Authority has been arrested for the second time this year over investment fraud crimes.

Peter Quartararo, 56, of Glen Cove, New York, who was arraigned in April with a business partner on charges they stole $436,000 from four investors, was arraigned Tuesday before Judge David Levine on charges he stole more than $80,000 from victims who believed they were investing in shares of Airbnb, DoorDash and Petco, Acting Nassau County District Attorney Joyce A. Smith said.

Quartararo was charged with grand larceny in the second degree (a C felony) and grand larceny in the third degree, according to Smith. If convicted on the top count, the maximum sentence he can receive is 5 to 15 years in prison. Quartararo is due back in court on Oct. 20.

“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,” Smith said in a statement.

More Details

In August 2020, Quartararo introduced himself to his first victim at a tenants-only barbecue at the complex he lived in and claimed he was an investor and a financial advisor, according to Smith. Quartararo allegedly told the victim he possessed pre-initial public offering shares of Airbnb and DoorDash at $2 a share and that he would sell the victim some of his shares.

The individual gave Quartararo $11,500 in cash and later wired him an additional $58,000 in exchange for what the victim believed to be pre-IPO shares of Airbnb, according to Smith.

Another alleged victim also met Quartararo at their Glen Cove apartment building. Quartararo allegedly introduced himself as being an investor and stated he could get the victim stocks “on the ground floor” at $1.65 a share, according to Smith. In January, that second victim gave Quartararo $14,000 in cash in exchange for what he believed were shares of Petco at $1.65 each.

Quartararo never delivered any shares to his victims, nor did he provide any financial statements indicating the victims owned shares of stock, according to Smith. An NCDA investigation revealed Quartararo never bought any shares on behalf of the victims.

Quartararo, who was barred from operating as a broker in March 2013 by FINRA, and co-conspirator Paul Casella of East Meadow were both charged in April with grand larceny and other charges for allegedly stealing $436,000 from four investors.

The defendants allegedly spent the investors’ funds on personal luxury items and travel, according to then-Nassau County DA Madeline Singas, who was recently appointed associate judge on the New York Court of Appeals.

The funds were deposited in accounts the defendants controlled to buy food, travel and vehicles, including a 2020 Mercedes-Benz SUV, and as the down payment on Quartararo’s Maserati automobile, Smith said Tuesday.