Former NJ corrections officer charged over crypto fraud scheme

Former NJ corrections officer charged over crypto fraud scheme

[ad_1]

SOUTH JERSEY (KYW Newsradio) — A retired corrections officer in Atlantic County is facing state and federal charges related to a cryptocurrency fraud scheme.

The New Jersey Acting Attorney General’s office says 47-year-old John DeSalvo of Marmora was seeking first responders to invest in a digital token known as Blazar, which authorities describe as worthless. He’s alleged to have said the returns from Blazar would supplement their state pensions.

Prosecutors say the victims would not have invested without deceptive representations from DeSalvo, who profited from the sales, and they certainly wouldn’t have knowingly invested in something they knew was worthless.

According to federal prosecutors, Blazar was a creation of DeSalvo’s. He raised over $620,000 from more than 200 investors. He then sold the bulk of his Blazar tokens, causing the value to drop, which wiped out most of his victims’ investments.

State and federal authorities took DeSalvo into custody this week. He faces theft by deception and deceptive business practices charges in New Jersey, which come with up to 10 years in prison if convicted.

DeSalvo is also charged with six federal counts, including two counts each of wire fraud, securities fraud and money laundering, and faces a maximum of 20 years for each offense. There’s no date set yet for a court hearing.

Featured Image Photo Credit: grinvalds/Getty Images

[ad_2]

Leave a Comment

Comments

No comments yet. Why don’t you start the discussion?

Leave a Reply

Your email address will not be published. Required fields are marked *