2 Long Islanders Charged In Investment Fraud Scheme: Feds

BROOKLYN, NY — Two Long Islanders were charged on Thursday in connection with a pre-IPO fraud scheme, federal prosecutors announced.

Robert Cassino, also known as "Bobby Cassino," 62, of Long Beach, and Joseph Rivera, 45, of Elmont, were charged, along with the third man, with securities fraud conspiracy, wire fraud conspiracy and securities fraud, the U.S. Attorney's office said. A fourth man was previously indicted.

Acccording to the superseding indictment, the men engaged in a scheme to defraud investors and prospective investors in securities offered by the company Late Stage Management, LLC, U.S. Attorney John Durham said.

Cassino and Rivera led operations at Pre IPO Marketing, Prior2IPO and B4IPO, respectively.

They made misrepresentations and omissions to investors and potential investors in Late Stage relating to, among other things, the existence and amount of fees paid by investors in stock offered by Late Stage, prosecutors said.

Between March 2019 and July 2022, sales offices working on behalf of Late Stage raised approximately $528 million from investors and diverted approximately $88.6 million in undisclosed upfront markups to Cassino, Rivera and their co-conspirators, Durham said.

"At the behest of the company’s leadership, three defendants allegedly enticed investors
with material misinformation to steal millions of their dollars through undisclosed upfront fees. This alleged scheme allowed the defendants’ respective sales offices to unlawfully profit at the
expense of their clients’ trust and money," said FBI Assistant Director in Charge James Dennehy.