Public records published by the Financial Industry Regulatory Authority (FINRA) and accessed on June 7, 2018 indicate that former New York-based Lombard Securities broker Steven Pagartanis has been sanctioned by FINRA and barred from acting as a broker, and has also been named in pending SEC fraud charges. Fitapelli Kurta is interested in speaking to investors who have complaints regarding Mr. Pagartanis (CRD# 1958879).
Steven Pagartanis has spent 28 years in the securities industry and was most recently registered with Lombard Securities in Setauket, New York (2017-2018). Previous registrations include Cadaret Grant & Company in Setauket, New York (2012-2017); Woodbury Financial Services in East Setauket, New York (2011-2012); Cadaret Grant & Company in East Setauket, New York (2006-2011); Invest Financial Corporation in South Setauket, New York (2005-2006); Cadaret Grant & Company in Syracuse, New York (2003-2005); Yankee Financial Group in Melville, New York (2002-2003); Park Avenue Securities in New York, New York (1999-2002; Guardian Investor Services in New York, New York (1997-1999); Tower Square Securities in El Segundo, California (1996-1997); John Hancock Distributors in Boston, Massachusetts (1995-1996); John Hancock Mutual Life Insurance Company in Boston, Massachusetts (1995-1996); Pruco Securities Corporation in Newark, New Jersey (1989-1994); and the Prudential Life Insurance Company of America in Newark, New Jersey (1989-1993). He is currently not registered with any state or firm.
According to his BrokerCheck report, he has received one customer complaint, nine pending complaints, one FINRA sanction, and one pending SEC complaint.
In May 2018 the Securities and Exchange Commission charged him with “defrauding long-standing brokerage customers in an $8 million investment scam.” According to an SEC release, Mr. Pagartanis told certain investors, including retirees, that he would invest their funds in one of two investments, a publicly traded or private land development company, for which he allegedly promised guaranteed monthly interest payments. These investors, according to the SEC, wrote checks that were payable to an entity with a similar name which Mr. Pagartanis “secretly controlled.” His customers invested around $8 million, according to the SEC, which he used to fund personal expenses and to make the interest payments to his clients. The SEC states further that to hide the scheme, “which unraveled earlier this year when Pagartanis stopped making the so-called interest payments,” he drew up false account statements that reflected ownership interests in the land development companies. He has been charged with violations Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder; the SEC seeks a judgment ordering Pagartanis to disgorge his ill-gotten gains plus prejudgment interest, and to pay financial penalties. The charges remain pending.
In May 2018 a customer alleged Steven Pagartanis, while employed at Cadaret Grant & Company, recommended investments in Genesis Land Development Corporation, an investment that was not approved by the firm and which he allegedly controlled. The customer is seeking $3,100,000 in damages in the pending complaint.
In April 2018 a customer alleged Steven Pagartanis, while employed at Cadaret Grant & Company, recommended unsuitable investments in “a small, speculative land development company.” The customer is seeking $3,700,000 in damages in the pending complaint.
If you or someone you know has a complaint regarding Steven Pagartanis, call Fitapelli Kurta at 877-238-4175 for a free consultation. You may be eligible to recoup lost funds. Fitapelli Kurta accepts every case on contingency: we only get paid if and when you collect money. Time to file your claim may be limited, so we recommend you avoid delay. Call 877-238-4175 now to speak to an attorney for free.