MORRISTOWN, NJ – Thomas Nicholas Salzano, 66, from Secaucus, New Jersey, was sentenced on November 12, 2024, to 12 years in federal prison for orchestrating a massive $658 million Ponzi scheme that defrauded more than 2,000 investors. Salzano was convicted of charges related to fraud, conspiracy, and tax evasion, as announced by U.S. Attorney Philip R. Sellinger.
Salzano, who served as the shadow CEO of National Realty Investment Advisors LLC (NRIA), was found to have led a multi-year scheme that misled investors about the financial health of the company. NRIA falsely promoted itself as a successful real estate investment fund with substantial returns, despite generating little actual profit. Instead, Salzano and his associates used new investor funds to pay returns to earlier investors, a hallmark of a Ponzi scheme.
Between February 2018 and January 2022, Salzano directed an aggressive national marketing campaign, including TV and radio ads, billboards, and in-person presentations. These marketing efforts misrepresented the financial status of NRIA, drawing in new investors by promising lucrative returns, while the company’s actual performance was far from profitable.
As part of the scheme, Salzano admitted to misappropriating millions of dollars for personal use, including lavish parties, travel, and payments to family and friends, all while concealing his history of fraud from investors.
In addition to the Ponzi scheme, Salzano conspired to evade taxes on the stolen funds, leading to millions of dollars in unpaid tax liabilities.
Sentencing Details:
- 12-year prison sentence
- $507.4 million in restitution to victims
- $8.52 million forfeiture
- $6.46 million to the IRS for unpaid taxes
- Three years of supervised release following imprisonment
U.S. District Judge Evelyn Padin oversaw the sentencing, emphasizing the scope and severity of Salzano’s crimes, which have left many investors financially devastated. The restitution and forfeiture requirements are part of efforts to compensate victims who lost significant sums in the fraudulent scheme.
Salzano’s sentencing serves as a reminder of the severe penalties for those who engage in large-scale fraud and financial misconduct. U.S. Attorney Sellinger noted, “Salzano’s actions not only destroyed the financial futures of thousands of victims, but also undermined the integrity of our financial markets.”
This case highlights the growing issue of Ponzi schemes and financial fraud targeting unsuspecting investors, underscoring the need for vigilance in financial markets and the importance of holding criminals accountable.
