The so-called shadow chief executive officer of a New Jersey development firm is headed to prison for his role in an enormous Ponzi scheme.
A judge sentenced National Realty Investment Advisors leader Thomas Salzano to 12 years in prison, the U.S. Attorney’s Office announced this week. Salzano also received three years of supervised release, an $8.5 million judgment, a $6.5 million bill for the IRS and a requirement to pay victims of his scheme restitution to the tune of more than $507 million.
“His greed and flagrant disregard for the law caused staggering losses in excess of $650 million,” U.S. Attorney Philip Sellinger said in a statement.
Salzano in February pleaded guilty to securities fraud, conspiracy to commit wire fraud and conspiracy to defraud the United States, admitting his role in the scheme that defrauded more than 2,000 investors out of $658 million.
Salzano admitted to misleading investors while misappropriating millions of dollars. He and his co-conspirators began defrauding investors out of a portfolio fund in February 2018, deceiving investors regarding NRIA’s finances, how money was being used, Salzano’s role and his history of fraud at a telecommunications company.
The scheme included Salzano leading a nationwide marketing campaign, featuring billboards, radio and television ads. Marketing materials contained falsified documents that portrayed NRIA as a solvent profit generator, when it was anything but.
Salzano received the harshest penalty possible under the terms of his plea deal, which granted the judge flexibility to sentence the 66-year-old between 8 and 12 years in prison. The FBI arrested Salzano in March 2021 after a standoff outside his New Jersey home. He was initially charged with faking a $25 million loan guarantee while trying to defraud a California woman out of $150,000, according to Regulatory Compliant Watch.
Read more
Development
Tri-State
“Shadow” CEO of NJ developer pleads guilty to Ponzi scheme
Commercial
Tri-State
Embattled NJ developer files for bankruptcy
Legal
Tri-State
Former NRIA VP faces New Jersey enforcement action over alleged $630M real estate scheme
NRIA filed for Chapter 11 protection three years ago, listing assets worth between $50 million and $100 million and liabilities between $500 million and $1 billion. The company was founded in 2006 as a fix-and-flip firm, focused on condominium, townhome and multifamily development and investment.
Among those charged alongside Salzano in October 2022 was Rey Grabato II, the listed chief executive officer of the company.