2 Long Islanders plead guilty in $500 million investment fraud

Two Long Island men were among four people who have pleaded guilty to their roles in a $500 million securities fraud scheme, federal prosecutors said.

The four men — Robert Cassino, 63, of Long Beach; Joseph Rivera, 45, of Elmont, and Raymond John Pirrello Jr., 49, and Joseph Passalaqua, 37, both of Sparta, New Jersey — had been named in 2025 indictments charging them in connection with a scheme to defraud current and prospective investors in securities offered by Late Stage Management LLC, based in Montclair, New Jersey, the U.S. Attorney's Office for the Eastern District of New York said.

According to prosecutors, Late Stage offered investors "no fee" opportunities to invest in pre-initial public offering stocks.

But the government alleged that between March 2019 and July 2022, sales offices working for Late Stage raised $528 million from investors and diverted about $88.6 million in undisclosed markups and fees to the defendants and to others who prosecutors previously described as unnamed yet-to-be-charged co-conspirators. It was unclear Wednesday if charges remain pending against others potentially involved.

Prosecutors said while the defendants told investors Late Stage's only profit was on exit of a transaction, such as when a company made its IPO or was sold to a larger company, in reality it "charged fees in the form of upfront markups ranging from 10% to 100% for each investment."

Revenue generated as a result was used, prosecutors said, to pay not only principals at Late Stage, including Cassino, Pirrello and Passalaqua, but employees of the company's sale offices.

In February 2025, Newsday reported Pirrello had worked as a partner to the leadership of Late Stage, while Cassino, Rivera and Passalaqua led operations of sales offices — including Late Stage-affiliated operations in both Westbury and Lindenhurst.

On Tuesday, the U.S. Attorney's Office said Pirrello and Passalaqua had pleaded guilty to all three counts of the indictment — conspiracy to commit securities fraud, securities fraud and conspiracy to commit wire fraud.

Prosecutors said Cassino had pleaded guilty to wire fraud conspiracy on Feb. 18, while Rivera, who was arrested along with Cassino and Passalaqua, last month, also previously entered a guilty plea in the case.

"For years, the defendants brazenly lied to investors all over the country about the fees associated with their investments," U.S. Attorney Joseph Nocella Jr. said in a statement. "The defendants diverted millions of dollars in undisclosed mark-up fees to pay themselves and their co-conspirators. Our office will vigorously prosecute those who lie to innocent investors and deprive them of their hard-earned money to benefit themselves."

Pirrello and Passalaqua each face a maximum of 45 years in prison when sentenced, while Cassino and Rivera face a maximum of 20 years.

By John Valenti

john.valenti@newsday.com

John Valenti, a Newsday reporter since 1981, has been honored nationally by the Associated Press, Society of the Silurians and National Headliner Awards for investigative, enterprise and breaking news reporting, as well as column writing. He is the author of “Swee'pea,” about New York playground basketball star Lloyd Daniels. His debut crime novel, “For Nothing Is Hidden,” rooted in 1950s Long Island, was released in October 2025.