Former NJ Officer Arrested for Alleged Crypto Scheme Targeting First Responders
A former corrections officer from New Jersey has been arrested for targeting law enforcement and first responders in an investment scheme involving a digital token.
John DeSalvo, a 47-year-old resident of Marmora, New Jersey, allegedly created and promoted the Blazar Token in a bid to lure investors with the promise of a "crypto pension" that could supplement their pension plans, according to a Wednesday announcement from the Securities and Exchange Commission (SEC).
DeSalvo claimed that the token was either in the process of being approved or had already received approval from the SEC.
This false claim prompted over 200 investors, primarily police, fire personnel, and EMTs, to contribute more than $620,000 to the scheme.
"Blazar Token is the first token or coin that is able to be purchased through payroll deduction every week," DeSalvo allegedly told investors.
"It will be taken out of one’s weekly earnings pretax similar to payment into a pension, 401k, IRA, or any other retirement savings plans."
In May last year, DeSalvo sold billions of his own Blazar tokens while other investors were barred from selling their tokens.
The sell-off caused the token's price to plummet by more than 99%, which resulted in significant losses for most investors involved.
"We allege that DeSalvo orchestrated several fraudulent investment schemes that targeted law enforcement personnel and promised astronomical returns, including one involving a crypto asset security that would somehow replace traditional state pension systems," Gurbir S. Grewal, director of the SEC's enforcement division, said in a comment.
He added that instead of producing any returns for investors, DeSalvo misappropriated and misused their funds.
The SEC seeks a permanent
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