SEC v. Raymond J. Pirrello, Jr., et al. (2023)

Alleged — pending

These are allegations. SEC has filed an action; nothing in it has been proven, and the respondents have not been found liable. Everything described on this page is what the regulator alleges, not what a court has found. See our editorial policy.

Checked against the primary document on October 4, 2026. The library's summary, tags and figures for this record were compared with the regulator's own document by an AI model (Claude) following written instructions, with sampled and disputed records read a second time. No lawyer has reviewed them. A checked record can still contain errors, and checked does not mean endorsed. See how we check records or report a correction.

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In December 2023 the Securities and Exchange Commission charged five unregistered brokers and four companies with a pre-IPO offering fraud that raised at least $528 million from more than 4,000 investors, allegedly through undisclosed markups above 150 percent that produced more than $88 million for the defendants. The release mentions insider trading only as the earlier finding against Pirrello that led to his broker-dealer bar, not as conduct charged in this case.

The record

Structured fields for this action, as recorded in our case library.
Agency	SEC
Release number	LR-25907
Date filed	2023-12-07
Court	U.S. District Court, Eastern District of New York
Status	filed
Criminal parallel	No
Bars imposed	officer-and-director bar
Defendants	Raymond J. Pirrello, Jr. (individual) ; Marcello Follano (individual) ; Robert Cassino (individual) ; Anthony DiTucci (individual) ; Joseph Rivera (individual) ; Prior 2 IPO Inc. (entity) ; Late Stage Asset Management, LLC (entity) ; Pre IPO Marketing Inc. (entity) ; JL Rivera Enterprises Ltd. (entity)
Cited as charged or alleged	Exchange Act s.10(b) and Rule 10b-5 ; Exchange Act s.15(a) ; Exchange Act s.20(a) ; Securities Act s.5 (statutes and rules cited in the document; not a finding that they were violated)
Techniques

What was ordered

Civil penalty: —
Disgorgement: —
Prejudgment interest: —
Total relief: —
Alleged gain: —

A dash means the release did not state a figure we could extract, not that the figure is zero. Penalty and disgorgement are stored separately so aggregates across the library do not double-count the same dollars.

What is alleged to have happened

The Securities and Exchange Commission announced this matter on December 7, 2023 as release LR-25907, filing in the Eastern District of New York on December 6, 2023.

The complaint alleges that the defendants used a network of unregistered sales agents to sell pre-IPO securities while falsely telling investors there were no upfront fees. It also alleges that they concealed Pirrello's role because he had been barred from associating with broker-dealers after a 2019 jury found him liable for insider trading. The charges are antifraud and registration violations, not insider trading.

For the regulator's own account of the facts, read the primary document linked above. This page deliberately summarises the structured record rather than reproducing the release.

Checked on 2026-10-04: no outcome found on SEC pages. The SEC litigation-release index, which runs through LR-26664, has no later release naming these defendants.

Timeline

2023-12-07 Litigation release published

Primary documents

Everything on this page derives from the documents below. Where our summary and the primary document disagree, the primary document is right.

SEC litigation release

The linked release is a work of the United States government and is not subject to copyright. Our summary and narrative above are our own writing.

Record added September 10, 2026. If this matter has since resolved, been withdrawn or been dismissed, we want to know: submit a correction.