On May 30, SEC charged broker with defrauding clients up to $8mn.
- Charged former registered representative with defrauding long-standing brokerage customers in an $8mn investment scam, including senior citizens, misled investors.
Alleged Fraud
- Steven Pagartanis, affiliated with broker dealer, told customers would invest in public traded or private land development companies, promised safe investment returns,.
- In ponzi-scheme like structure told them to "invest" in account, used to pay personal expenses and make guaranteed "interest" payments to his customers, ran out of it.
- Fictitious investment account statements created to show fake ownership interests.
- Suffolk County District Attorney’s Office filed criminal charges against him today too.
Penalty
- SEC filed in Brooklyn federal court for violating anti-fraud provisions of securities laws.
- Will order cease and desist, disgorgement, also civil penalties for alleged conduct.
