Leonard Quartararo

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 26260 / March 4, 2025

Securities and Exchange Commission v. Quartararo, No. 2:21-cv-02305 (E.D.N.Y filed Apr. 27, 2021)

SEC Obtains Final Judgment Against Relief Defendant in Offering Fraud Scheme

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.

The Commission’s complaint, filed on April 27, 2021, alleged that Peter Quartararo engaged in a scheme to defraud investors by 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. Peter Quartararo allegedly instructed investors to make out their checks to his father, Leonard, as well as to 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. On March 23, 2023, the Court ordered a final judgment on consent against relief defendant Paul Casella in which he was ordered to pay $33,128.88 in disgorgement, payment of which was deemed satisfied by the order of forfeiture in New York v. Casella, No. CR-005124-21NA (Sup. Ct. NY). On the same day, the Court also ordered a final judgment on consent against relief defendant Lisa Eckert in which she was ordered to pay $46,600 in disgorgement, payment of which was deemed satisfied by an order of attachment in New York v. Quartararo, No. CR-0000238/2021 (Sup. Ct. NY). The Commission voluntarily dismissed the action against relief defendant Private Equity Solutions, Inc.

The SEC’s investigation was conducted by Bennett Ellenbogen, Elizabeth Baier, and Lindsay S. Moilanen, and supervised by Thomas J. Smith, Jr. The litigation is being led by Todd Brody and Mr. Ellenbogen and is being supervised by Daniel Loss.