U.S. News
Three Fraudsters Admit $88M Investor Scam
Clear Facts
- Raymond Pirrello, Joseph Passalaqua, and Robert Cassino pleaded guilty to securities fraud and wire fraud conspiracy.
- They ran a scheme through Late Stage Management LLC promising no-fee pre-IPO investments but hid 10-100% markups diverting $88 million from $528 million raised.
- Pirrello hid his identity due to prior SEC permanent bar while directing sales offices in NJ, NY, and FL.
Three defendants admitted guilt this week in Brooklyn federal court before Judge Kiyo A. Matsumoto. Pirrello (49, Sparta, NJ), Passalaqua (37, Sparta, NJ), and Cassino (63, Long Beach, NY) face up to 45, 45, and 20 years in prison respectively.
Co-defendant Joseph Rivera (45, Elmont, NY) had pleaded guilty earlier. The fraud operated from March 2019 to July 2022.
They falsely claimed Late Stage only profited on exits with 20% of gains, but charged undisclosed upfront markups paying themselves and sales staff.
“For years, the defendants brazenly lied to investors all over the country about the fees associated with their investments,” stated United States Attorney Joseph Nocella.
“The defendants diverted millions of dollars in undisclosed mark-up fees to pay themselves and their coconspirators. Our Office will vigorously prosecute those who lie to innocent investors and deprive them of their hard-earned money to benefit themselves.”
This prosecution protects hardworking Americans from Wall Street predators preying on trust.
Justice served reinforces rule of law for traditional investors—stay vigilant against scams.
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