Litigation Releases (Peter R. Quartararo)

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 26527 / April 15, 2026

Securities and Exchange Commission v. Quartararo, No. 21-civ-02305 (E.D.N.Y filed Apr. 27, 2021)

SEC Obtains Final Judgment Against Peter Quartararo in Offering Fraud Scheme

On March 31, 2026, the U.S. District Court for the Eastern District of New York entered a final judgment by default against defendant Peter Quartararo in connection with previously-filed fraud charges.

The SEC's complaint, filed on April 27, 2021, alleged that Quartararo engaged in a scheme to defraud investors by falsely claiming that he could sell them shares in well-known privately-held companies, which were expected to increase in value when those companies completed their initial public offerings. As alleged, Quartararo never purchased or held pre-IPO shares in these companies on behalf of the investors. Instead, Quartararo allegedly stole the funds and used them for his personal benefit.

The final judgment permanently enjoins Quartararo 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.

Previously, on February 9, 2024, in the parallel criminal action, New York v. Quartararo, No. 70204/23 (Sup. Ct. NY.), Quartararo pleaded guilty to scheme to defraud and other criminal charges, and was later sentenced to two and a half to seven and a half years in prison and ordered to pay restitution in the amount of $249,000.

The SEC's investigation was conducted by Bennett Ellenbogen, Elizabeth Baier, and Lindsay S. Moilanen, and supervised by Thomas P. Smith, Jr. The litigation was led by Todd Brody and Mr. Ellenbogen and was supervised by Daniel Loss. The SEC appreciates the assistance of the Nassau County District Attorney's Office.