NJ man accused of crypto, investment schemes

A former corrections officer from the Marmora section of Upper Township is accused of organizing two fraud schemes, the U.S. Attorney's Office said Wednesday.

John DeSalvo, 47, was charged with two counts of wire fraud, two counts of securities fraud and two counts of money laundering. He was scheduled to appear in Newark federal court Wednesday afternoon.

DeSalvo was the creator of a cryptocurrency known as "Blazar Token," which he marketed to police, fire personnel, EMTs and other first responders as a "crypto pension," the U.S. Attorney's Office said in a news release.

He used social media to solicit investments in Blazar through a series of misrepresentations, the U.S. Attorney's Office said, raising more than $620,000 from more than 200 investors and then using the money for personal expenses, trading cryptocurrencies and payments to prior investors.

DeSalvo also managed and solicited investment in an investment group through Brokerage-1, an online trading platform. DeSalvo marketed the investment group on social media and made false claims of success, the U.S. Attorney's Office said.

DeSalvo totaled $100,000 in investments from approximately 20 individuals for the investment group. He then transferred the funds out of the investment group's account and into his personal accounts, the U.S. Attorney's Office said.

After draining the investment group's account, DeSalvo told investors their money had been lost due to poor market conditions and provided them with false trading records.

The counts of wire fraud, securities fraud and money laundering each carry a maximum potential penalty of 20 years in prison and fines ranging from $250,000 to $5 million.

The U.S. Securities and Exchange Commission also filed a civil complaint against DeSalvo on Wednesday.