NEWARK, NJ – A former corrections officer from New Jersey has admitted to orchestrating fraud schemes targeting first responders, resulting in over $600,000 in losses.
In federal court, John DeSalvo, 47, of Linwood, NJ, pleaded guilty to securities fraud charges for his involvement in two fraudulent investment schemes. U.S. Attorney Philip R. Sellinger announced that DeSalvo targeted law enforcement, fire personnel, and other first responders with a cryptocurrency scheme dubbed “the crypto pension.” DeSalvo’s fraudulent activities promised high returns with no risk, exploiting the trust of public servants.
DeSalvo’s Blazar Token was marketed as a stable investment to supplement pensions, falsely claiming SEC approval and guaranteed returns. However, after raising over $620,000 from more than 200 investors, DeSalvo misappropriated the funds for personal use and other illicit activities, leading to significant losses for investors.
Additionally, DeSalvo managed a fraudulent investment group through a brokerage, attracting around $100,000 from investors under pretenses. He drained these funds for personal benefit, leaving investors with substantial losses.