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The “shadow” CEO of a New Jersey real estate investment company has pleaded guilty to conspiring to defraud more than 2,000 investors out of more than $650 million through a Ponzi scheme, while also conspiring to evade tens of millions of dollars in taxes.
The New Jersey U.S. Attorney’s Office has accused Nicholas Salzano of being the “shadow CEO” of Secaucus-based National Realty Investment Advisors, which secretly ran the company behind the scenes. He said he was a person. Salzano admitted to misappropriating millions of dollars from investors for the benefit of himself, his family and friends.
Prosecutors said Mr. Salzano had to hide his real managerial role at NRIA to avoid having his background investigated by investors and finding out that he had pleaded guilty to five counts of theft by fraud in 2006. He claims to have hidden it.
According to the indictment against Salzano, Salzano and his associates conducted an aggressive national marketing campaign that included sending thousands of emails to investors. TV, radio, and billboard advertising. Meetings and presentations with investors.
“Salzano directed and directed a marketing campaign that used deception, material misstatements and omissions, and falsification of documents in order to manipulate investors,” the indictment states. It added that the aim was to mislead investors into believing that NRIA was solvent. It generated a large amount of profit.
“For years, Salzano lied and deceived investors, operating his business as a Ponzi scheme and stealing money from thousands of investors,” U.S. Attorney Philip Sellinger said in a release. Stated. “His greed and blatant disregard for the law resulted in staggering losses of over $650 million.”
According to the indictment, the fund provided investors with monthly distributions of 6% to 10% of their principal investment on an annual basis. Investors also received a written guarantee from NRIA that they would recover the full amount of their investment, in addition to a return of at least 12% per year for five years. NRIA also said it would make up the shortfall.
“In reality, NRIA made little profit and was operated as a Ponzi scheme, kept afloat by new fund investors,” according to the indictment. “The defendants misappropriated millions of dollars of investor funds to support their lavish lifestyles, even though they invested little of their own money in the business.”
Salzano also allegedly lied to the IRS and used a network of candidates to open bank accounts in their names, “preventing, impeding, and impairing” Salzano’s ability to collect unpaid taxes. He led another conspiracy. Use of a false organization and use of false and fraudulent company documents. ”
Under his plea agreement, Salzano agreed to serve eight to 12 years in prison, forfeit more than $8.5 million, and pay full restitution to his victims of $507.4 million.
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Tags: National Realty Investment Advisors, Nicholas Salzano, U.S. Attorney’s Office, District of New Jersey, fraud, real estate investment company, pyramid scheme
Tags: scam, National Realty Investment Advisors, Nicholas Salzano, pyramid scheme, real estate investment company
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