STEVE PAGARTANIS Liable For Misrepresenting Investments

The Financial Industry Regulatory Authority (“FINRA”) disclosed on June 26, 2019, that a FINRA Arbitration Panel issued an Award in FINRA Arbitration #: 18-01353, requiring that Cadaret, Grant Co. Inc. securities broker Steven Pagartanis (CRD#: 1955579, Setauket, New York) pay $1,462,000 in compensatory damages to a Cadaret client who fell victim to Pagartanis’ misrepresentations and omissions regarding investments.

FINRA Arbitration Panel Orders Steve Pagartanis To Pay $1.4M For Misrepresenting Investment In Genesis Land Development Corp.

The FINRA Arbitration Award shows that the Cadaret client filed the Arbitration on April 12, 2018. In the Statement of Claim, the client suggested that Steve Pagartanis misrepresented investment information and failed to disclose critical information. Supposedly, Pagartanis also told the client to purchase investments in Genesis Land Development Corp., which Cadaret did not offer or authorize. According to the client, Pagartanis placed his interest ahead of the client, violating his fiduciary responsibility. The client further suggested that Pagartanis’ actions were unsupervised.
Allegedly, Pagartanis never appeared for the FINRA Arbitration proceedings. Therefore, the Panel found Pagartanis liable on the sales practice infractions alleged by the client.

Cadaret Grant Settles Client Dispute Alleging Pagartanis’ Unsuitable Recommendations

 
Evidently, another Cadaret client contested Steve Pagartanis’ sales practices in bringing FINRA Arbitration #: 18-01275 dated April 17, 2018. The client alleged that Pagartanis gave bad advice about real estate securities. Supposedly, the client purchased speculative investments, including those in the land development company, at Pagartanis’ direction. Those investments, which were not suitable for the client, produced losses. Because of this, on March 19, 2019, Cadaret opted to settle the client’s claim by paying the client $103,500.

Lombard Investor Complains About Steve Pagartanis’ Solicitation Of Generis Company - Canada

 
What’s more, FINRA BrokerCheck shows that a Lombard Securities Incorporated client complained about Steve Pagartanis’ actions. The client alleged in the February 26, 2018 complaint that Pagartanis asked the clients to write out checks to Genesis Company - Canada. for an investment. Similar to the other matter, this securities firm allegedly did not authorize this investment for the client. Allegedly, after making the investment, Pagartanis did not provide any confirmations or statements reflecting the client’s investments. Eventually, on February 13, 2019, Lombard Securities Incorporated opted to pay the client $165,000 in order to settle.

Pagartanis Pleads Guilty To Wire Fraud

 
On December 10, 2018, the United States Attorney’s Office confirmed that Steve Pagartanis pleaded guilty to conspiring to commit mail and wire fraud. Supposedly, Pagartanis executed a Ponzi Scheme which victimized elder investors between 2000 and 2018. Notably, Pagartanis admitted that in his scheme, he instructed elderly investors to give him money for real estate investments. Pagartanis supposedly induced investors into buying the investments by him promising them up to 8 percent annually in fixed returns.
The United States Attorney’s Office says Steve Pagartanis used the money investors gave him to buy expensive items and pay expenses. Also, he used investors’ deposits to pay other, prior investors who were also victim to Pagartanis’ scheme. To conceal his scheme, he apparently made fake accounts statements for the investors. He reportedly caused those investors to experience $9,000,000 in losses. As a result of the fraud Pagartanis pleaded guilty to, he could serve up to 20 years in prison.
The Securities and Exchange Commission (“SEC”) also brought a civil action against Steve Pagartanis for violating federal securities laws. Apparently, SEC’s claim is ongoing. Plus, on April 13, 2018 FINRA barred Pagartanis from the securities industry. Evidently, Pagartanis refused to appear and provide sworn testimony in reference to his alleged misappropriation of investors’ assets and fraudulent misrepresentations.

Did Steve Pagartanis Cause Your Investment Losses

Did you experience losses by investing with Cadaret broker Steve Pagartanis? If so, feel free to contact Soreide Law Group at (888) 760-6552 and speak with experienced counsel about a possible recovery of your investment losses. Soreide Law Group represents clients on a contingency fee basis and advances all costs. The firm has recovered millions of dollars for investors who have suffered losses due to misconduct of brokers and brokerage firms.