NJ Corrections Officer Cryptocurrency Fraud
courtesy of linkedin.com

A former New Jersey corrections officer, John DeSalvo, has been arrested for orchestrating two major fraud schemes. U.S. Attorney Philip R. Sellinger confirmed the allegations, which include a cryptocurrency fraud resulting in losses upwards of $600,000.

DeSalvo, a 47-year-old resident of Marmora, New Jersey, now faces multiple charges, including wire fraud, securities fraud, and money laundering. These schemes are said to have falsely promised investors, notably law enforcement and first responders, sky-high returns.

A significant part of the deception involved the “Blazar Token.” Marketed as a “crypto pension,” DeSalvo lured in first responders, such as EMTs, police, and fire personnel, with promises of stability and skyrocketing value. Contrary to his claims, once the funds were in his hands, DeSalvo allegedly used them for personal gains, even drawing parallels to a Ponzi scheme.

Sadly, many of these investors saw their investments vanish, especially after DeSalvo sold off a significant amount of Blazar tokens, plummeting its value irreversibly.

Furthermore, DeSalvo is accused of defrauding through an online trading platform named Brokerage-1. Here, he flaunted purported high success rates, attracting about 20 individuals to invest. However, these funds were also diverted for personal uses.

The severity of these crimes is highlighted by the hefty penalties each charge carries, with potential fines amounting to millions of dollars. Alongside the criminal charges, the U.S. Securities and Exchange Commission (SEC) has filed a civil complaint against DeSalvo based on the same set of events.

While the allegations paint a damning picture, it’s essential to remember that DeSalvo remains innocent until proven guilty.