Steven Pagartanis of Seatauket New York a stockbroker formerly registered with Cadaret Grant Co. Inc. has been barred by United States Securities and Exchange Commission (SEC) from being a stockbroker or investment adviser representative or otherwise associating with securities broker dealers or investment advisories as Pagartanis pleaded guilty to conspiracy to commit mail and wire fraud. In the Matter of Steven Pagartanis Administrative Proceeding File No. 3-19919 (Feb. 17, 2021).
According to the Order, Pagartanis pleaded guilty to conspiracy to commit mail and wire fraud in violation of 18 USC Sections 1341, 1343 and 1349. United States v. Steven Pagartanis Crim. No. 18-cr-374 (Jan. 9, 2020). He received a 170-month prison sentence.
Pagartanis admitted to having taken part in a fraudulent scheme involving 17 investors between January of 2000 and March of 2018. $13,000,000.00 had been raised in the scheme. Pagartanis had investors believe that they were investing in land development companies including Genesis and GDC. Pagartanis failed to make those investments.
Financial Industry Regulatory Authority (FINRA) Public Disclosure shows that Pagartanis has been identified in fourteen customer initiated investment related disputes containing accusations of his misconduct when he was employed by Cadaret Grant, Park Avenue Securities, and Lombard Securities. On December 31, 2018, a customer initiated investment related complaint regarding Pagartanis’ conduct was resolved for $56,250.00 in damages supported by allegations that the customer had been advised to make an outside investment that the securities broker dealer did not approve.
Another customer initiated investment related FINRA securities arbitration claim regarding Pagartanis’ conduct was settled for $1,100,000.00 in damages on December 18, 2018 based upon accusations that from 2014 to January of 2017, the customer invested in a speculative land development company and had incurred damages in purchasing this real estate security. FINRA Arbitration No. 18-01320. On December 21, 2018, a different customer initiated investment related complaint involving Pagartanis’ conduct was resolved for $150,000.00 in damages founded on allegations that the customer had been sold an unsuitable real estate security by Pagartanis away from Cadaret Grant.
Pagartanis is referenced in a customer initiated investment related FINRA securities arbitration claim which was settled for $103,500.00 in damages on March 19, 2019 supported by accusations of unsuitable investment recommendations by the stockbroker. FINRA Arbitration No. 18-01275. The stockbroker is also named in a customer initiated investment related FINRA securities arbitration claim in which the customer was awarded $1,462,000.00 in compensatory damages according to Pagartanis being found liable on the customer’s causes of action including misrepresentation and breach of fiduciary duty. FINRA Arbitration No. 18-01353 (June 26, 2019).
On February 13, 2020, another customer initiated investment related FINRA securities arbitration claim regarding Pagartanis’ conduct was resolved for $87,500.00 in damages based upon allegations that the customer had been placed into a real estate security and an over-the-counter equity, neither of which was authorized by Cadaret Grant or Lombard Securities. FINRA Arbitration No. 18-03070 (Feb. 13, 2020). According to the claim, Pagartanis used the money for his own benefit.
On October 6, 2020, a different customer filed an investment related complaint pertaining to Pagartanis’ activities where the customer sought $5,000.00 in damages founded on accusations that their funds had been misappropriated by the stockbroker during the time that he was associated with Park Avenue Securities and Cadaret Grant. FINRA Arbitration No. 20-03414 (Oct. 6, 2020). The claim alleges that the customer had been solicited by Pagartanis in regard to an investment in a Long Island builder. The claim alleges that the securities broker dealers failed to supervise Pagartanis’ activities concerning the customer’s real estate security purchase.
Pagartanis is also the subject of a customer initiated investment related FINRA securities arbitration claim in which the customer requested more than $5,000.00 in damages supported by allegations that from 2006 to 2008, the customer was misled regarding their investment through Pagartanis and that their funds had been misappropriated by Pagartanis. FINRA Arbitration No. 20-03413 (Oct. 1, 2020).
Pagartanis’ registration with Cadaret Grant has been terminated as of March 20, 2017. He was registered with Lombard Securities Incorporated from September 7, 2017 to March 17, 2018.