Skip to main content

SEC Bars Steven Pagartanis in $13 Million Ponzi Scheme

By March 2, 2021Ponzi Scheme

The Securities and Exchange Commission recently barred former investment advisor Steven Pagartanis for his role in a Ponzi scheme to defraud at least 17 investors of more than $13 million, according to a recent SEC Order. Pagartanis is currently serving a 14-year prison sentence for his role in the scheme.

As the SEC stated in a news release:

“From January 2000 to March 2018, Pagartanis, then an affiliate of a registered broker-dealer, solicited victims, almost all of whom were elderly women, to invest in two publicly traded companies, promising an eight percent return.  At Pagartanis’s direction, the victims wrote checks payable to an entity he secretly controlled.  Pagartanis then laundered the victims’ investments through a series of bank accounts, and used the money to pay personal expenses, purchase luxury items, fund failed business ventures including his wife’s pet store and make the guaranteed ‘interest’ or ‘dividend’ payments to other victims.  The defendant’s victims invested over $13 million and sustained losses of over $9 million.  Many lost substantial amounts of their life savings, including funds set aside to help ill family members, pay college expenses and maintain their homes.”

The Financial Industry Regulator Authority (“FINRA”) barred Steven Pagartanis in April 2018, according to a review of his FINRA BrokerCheck report.

If you believe that you may have suffered financial losses due to the misconduct of a financial professional, we may be able to help. Our lawyers will review your investments, analyze your specific situation, and provide you with our opinion as to whether or not you may have a viable claim, free of charge. Please contact us to discuss your potential claim.

GWG Holdings Files for Bankruptcy: How Might That Impact L Bond Investors?