Two residents of Long Island admit guilt in $500 million investment scam

Two individuals from Long Island were part of a quartet who have admitted to being involved in a securities fraud scam amounting to $500 million, according to federal prosecutors. Robert Cassino of Long Beach, Joseph Rivera from Elmont, along with Raymond John Pirrello Jr. and Joseph Passalaqua from Sparta, New Jersey, were indicted in 2025 for their roles in a plot to deceive current and prospective investors in securities provided by Late Stage Management LLC in Montclair, New Jersey.

Late Stage supposedly offered investors the chance to invest in pre-initial public offering stocks without any fees. However, the government claimed that between March 2019 and July 2022, sales offices affiliated with Late Stage accumulated $528 million from investors and diverted approximately $88.6 million in undisclosed markups and fees to the defendants and other unidentified co-conspirators who are yet to face charges. The status of pending charges against other potential accomplices remains uncertain.

Prosecutors alleged that the defendants misled investors by claiming that Late Stage only profited upon the exit of a transaction, such as an initial public offering or company acquisition. In reality, the defendants charged fees in the form of upfront markups ranging from 10% to 100% for each investment. The revenue generated from these actions was utilized to compensate principals at Late Stage, including Cassino, Pirrello, and Passalaqua, as well as employees of the company’s sales offices.

In February 2025, Newsday disclosed that Pirrello collaborated closely with the leadership at Late Stage, while Cassino, Rivera, and Passalaqua managed the operations of sales offices associated with Late Stage in Westbury and Lindenhurst. The U.S. Attorney’s Office announced that Pirrello and Passalaqua entered guilty pleas to all three charges outlined in the indictment, including conspiracy to commit securities fraud, securities fraud, and conspiracy to commit wire fraud.

Cassino also pleaded guilty to wire fraud conspiracy on February 18, and Rivera, who was arrested along with Cassino and Passalaqua, previously submitted a guilty plea in the case. U.S. Attorney Joseph Nocella Jr. remarked that the defendants had lied to investors across the nation about the fees linked to their investments for several years. The defendants diverted millions of dollars in undisclosed mark-up fees to benefit themselves and their partners, compromising the finances of innocent investors. Pirrello and Passalaqua potentially face up to 45 years in prison each, while Cassino and Rivera could be sentenced to a maximum of 20 years in prison.