SHARES SOLD, BUT NEVER BOUGHT! SCAMMER STOLE INVESTOR CASH!

SEC v. Peter R. Quartararo — U.S. Securities and Exchange Commission Litigation Release No. 26527, dated April 15, 2026.

Peter Quartararo defrauded investors by falsely promising access to pre-IPO shares of well-known private companies. He never actually purchased these shares, instead pocketing the investors' money for personal use. A final judgment has been entered against him, permanently barring him from future securities law violations.

In Plain English

Imagine someone promises you a chance to buy a piece of a super popular company before it's available to everyone else, saying it will be worth a lot later. You give them your money, but instead of buying the shares, they just take your money for themselves. That's what happened here. A court has now told this person they can never do this kind of thing again.

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. Targeting Investors Peter Quartararo approached investors with a compelling offer: the chance to buy shares in well-known private companies before they went public. These were companies expected to see significant value increases upon their Initial Public Offering (IPO).
2. False Promises Quartararo falsely claimed he could secure these valuable pre-IPO shares for his clients. He presented this as a unique opportunity to profit from the anticipated growth of these prominent, yet private, companies.
3. Collecting Funds Investors, trusting Quartararo's representations, provided him with funds to purchase these promised pre-IPO shares. They believed their money was being invested in sought-after securities.
4. Misappropriation of Funds Instead of purchasing the shares as promised, Quartararo allegedly stole the investors' money. The complaint states he used these funds for his own personal benefit, betraying the trust placed in him.
5. No Shares Purchased Crucially, Quartararo never actually bought or held any pre-IPO shares on behalf of the investors. The entire premise of the investment opportunity was a fabrication.

The Enforcement Action

On March 31, 2026, the U.S. District Court for the Eastern District of New York entered a final judgment by default against Peter Quartararo. The judgment permanently enjoins him from violating Section 17(a) of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. In a parallel criminal action, Quartararo pleaded guilty to scheme to defraud and other charges on February 9, 2024, and was sentenced to two and a half to seven and a half years in prison and ordered to pay $249,000 in restitution.

Named in this action: Peter R. Quartararo.

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