DAD POCKETS INVESTOR CASH IN FAKE STOCK SCAM!

SEC v. Leonard Quartararo, Paul Casella, Lisa Eckert — U.S. Securities and Exchange Commission Litigation Release No. 26260, dated March 4, 2025.

The SEC charged Peter Quartararo with defrauding investors by promising shares in private companies expected to go public. His father, Leonard Quartararo, acted as a relief defendant, receiving investor funds. Leonard Quartararo has now agreed to a final judgment, ordering him to pay over $24,900 in disgorgement and interest.

In Plain English

Imagine someone promised to sell you a piece of a super popular toy company before it became famous. They asked you to send money, but instead of going to the toy company, the money went to their dad. Now, a court has ordered the dad to pay back the money he received, plus a little extra for the delay.

Disclaimer: all facts are drawn from the SEC's own filings; the claims described are allegations unless and until a court rules or the parties settle, and some cases end in dismissal.

How the Alleged Scheme Worked

  1. Promising Exclusive Access Peter Quartararo allegedly told investors he could sell them shares in popular private companies that were expected to become very valuable after their initial public offerings (IPOs).
  2. Directing Funds To facilitate the scheme, Peter Quartararo instructed investors to make their checks payable not just to another private company, but also to his father, Leonard Quartararo.
  3. Receiving Investor Funds Leonard Quartararo, as a relief defendant, received funds from investors as part of this alleged offering fraud scheme.
  4. SEC Complaint Filed The U.S. Securities and Exchange Commission (SEC) filed a complaint on April 27, 2021, detailing the allegations of fraud against Peter Quartararo and naming relief defendants like Leonard Quartararo.
  5. Final Judgment Against Leonard Quartararo On March 4, 2025, the U.S. District Court for the Eastern District of New York entered a final consent judgment against Leonard Quartararo.
  6. Monetary Order The judgment ordered Leonard Quartararo to pay $20,103.98 in disgorgement, plus $4,862.02 in prejudgment interest, totaling $24,966.

The Enforcement Action

On March 4, 2025, the U.S. District Court for the Eastern District of New York entered a final consent judgment against relief defendant Leonard Quartararo in SEC v. Quartararo. The Commission’s complaint, filed on April 27, 2021, alleged that Peter Quartararo engaged in a scheme to defraud investors by claiming he could sell them shares in well-known privately held companies expected to increase in value upon their initial public offerings. Peter Quartararo allegedly instructed investors to make out their checks to his father, Leonard, and another private company. The final consent judgment ordered Leonard Quartararo to pay $20,103.98 in disgorgement and prejudgment interest thereon of $4,862.02. Separately, on March 23, 2023, final judgments on consent were entered against relief defendants Paul Casella (ordered to pay $33,128.88 in disgorgement, satisfied by forfeiture) and Lisa Eckert (ordered to pay $46,600 in disgorgement, satisfied by attachment). The action against relief defendant Private Equity Solutions, Inc. was voluntarily dismissed.

Named in this action: Leonard Quartararo, Paul Casella, Lisa Eckert.