SEC Wins $2M+ Judgments in Two New Fraud Cases

The SEC obtained final judgments exceeding $2 million against Spartan Trading Company and the estates of its founders on April 16 for an alleged offering fraud. From 2019 to 2023, defendants raised over $3.7 million from Twin Cities investors under false pretenses of pooled investing while providing fictitious account statements.

On the same day, the agency won a $249,000 default judgment against Peter Quartararo for a pre-IPO fraud scheme. The court entered judgment by default on March 31 in the Eastern District of New York. These judgments follow a $4.2 million disgorgement order against former stockbroker Geoffrey Wall and other enforcement actions this week.

The concentrated enforcement actions signal sustained SEC focus on protecting retail investors from unregistered offerings and pump-and-dump schemes. Broker-dealers and investment advisers should expect continued scrutiny of customer communication practices and disclosure obligations.