The SEC has filed criminal charges against former broker Steven Pagartanis (CRD #1958879). These charges involve defrauding his long-time customers into investing in his own company, a security that was not sold by his firm. He promised his customers that the funds would give them guarantee interest payments. Pagartanis was, in reality, using the money for personal expenses and making “interest payments” out of that account. He created fictitious account statements for his customers to show “ownership.” When he stopped making the payments and complaints were filed, it became clear that he was not operating ethically.
Pagartanis was a broker for 28 years. His previous employers include:
- Cadaret, Grant & Co., Inc. (CRD #10641) of Seatauket, NY, from 09/17/2012 through 03/20/2017
- Woodbury Financial Services, Inc. (CRD #421) of East Seatauket, NY, from 08/24/2011 through 09/27/2012
- Cadaret, Grant & Co., Inc. (CRD #10641) of East Seatauket, NY, from 01/03/2006 through 09/13/2011
- Invest Financial Corporation (CRD #12984) of South Seatauket, NY, from 12/07/2005 through 02/01/2006
- Cadaret, Grant & Co., Inc. (CRD #10641) of Syracuse, NY, from 08/28/2003 through 12/08/2005
- Yankee Financial Group, Inc. (CRD #17966) of Melville NY, from 12/05/2002 through 09/08/2003. (Note: FINRA expelled this firm on 08/04/2006.)
- Park Avenue Securities LLC (CRD #46173) of New York, NY, from 05/03/1999 through 10/30/2002
- Guardian Investor Services Corporation (CRD #6635), of New York, NY, from 10/09/1997 through 05/03/1999
- Tower Square Securities, Inc. (CRD #833), of El Segundo, CA, from 07/18/1996 through 09/19/1997
- John Hancock Distributors, Inc. (CRD #468) of Boston, MA, from 01/11/1995 through 07/09/1996
- John Hancock Mutual Life Insurance Company (CRD #5181), of Boston, MA, from 01/10/1995 through 07/09/1996
- Pruco Securities Corporation (CRD #5685) of Newark, NJ, from 06/29/1989 through 12/22/1994
- The Prudential Insurance Company Of America (CRD #680), Newark, NJ, from 06/29/1989 – 12/10/1993
Eight of Pagartanis’ clients filed disputes in March and April 2018, alleging “selling away.” That is, advising his customers to invest in securities that were not being offered by his firm. Pagartanis was specifically asking his clients to invest in a company called Genesis Land Development Corporation, which he controlled himself. Genesis was “not an approved investment by the firm.” After an internal investigation, in which Pagartanis declined to respond to requests for information, Lombard Securities discharged him on 03/14/2018. The SEC filed its criminal charges on 05/30/2018.
Pagartanis was also previously discharged from Cadaret, Grant & Co., Inc., on 3/20/2017. He resigned the day before a scheduled examination took place, and no requested information was provided to the auditors. No charges were filed in this case.
Refusing to provide any information to FINRA for their investigation, Pagartanis signed an Acceptance, Waiver & Consent letter (AWC). On 4/13/2018, he was indefinitely barred from being affiliated with any FINRA broker in any capacity. He is no longer registered with any broker, and no record of any current employment is available.
An earlier client dispute was filed on 10/2/2013, in which the client alleged “unsuitable and misrepresented investments due to an error in the client’s 2008, 1035 exchange that omitted the 7% GMIB benefit.” The client requested damages in the amount of $88,000, and the firm settled for $80,000. Pagartanis was employed by Cadaret, Grant & Co., Inc. (CRD #10641) at the time.
The earliest of Pagartanis’ disclosures is a tax lien on 9/27/2008, in the amount of $210,722.84, for the tax periods 1998, 1999, 2000 and 2001.
Are you one of Steven Pagartanis’ clients?
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