The SEC Files Fraud Charges Against Former New Jersey Corrections Officer
The US Securities and Exchange Commission (SEC) has filed fraud charges against John A. DeSalvo, a former New Jersey corrections officer. DeSalvo is accused of scamming law enforcement personnel with a fake cryptocurrency investment.
- DeSalvo raised over $600,000 by selling an unregistered crypto token called Blazar Token.
- He falsely claimed that the token was registered and approved for payroll deductions.
- DeSalvo targeted the law enforcement community and promised huge returns.
- When Blazar Token collapsed, investors were left empty-handed.
- DeSalvo faces civil charges for violating securities laws and criminal charges have been filed as well.
The Former Officer Allegedly Abused His Position of Trust
According to the SEC, DeSalvo misused investor money and sent funds to his crypto wallets. He even used the money to pay for work on his home. The SEC claims that he abused his former status as an officer to gain trust and promote the bogus investments.
Not DeSalvo’s First Securities Fraud, According to the SEC
The SEC has stated that this is not the first time DeSalvo has been involved in securities fraud. In an earlier scheme in January 2021, he used social media to recruit investors for a stock and crypto trading venture. He took in $95,000 from 17 investors and misappropriated the funds.
Closing Thoughts
John A. DeSalvo’s alleged fraudulent activities demonstrate the importance of proper oversight and investor protection in the cryptocurrency space. Promoters must be held accountable for their actions, especially when they prey on vulnerable individuals who trust them. The SEC’s efforts to pursue crypto scams and ensure proper registration of securities are crucial for maintaining trust and integrity in the market.
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