Home News National Realty Investment Advisors gets cease and desist order from N.J. attorney general

National Realty Investment Advisors gets cease and desist order from N.J. attorney general

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The company and its affiliates have built more than 1,100 row houses in Philadelphia and planned large-scale development on the city’s waterfront., We also promised investors a big return of 12%, perhaps 20% or more, in national advertising Blitz in northern New Jersey, New York City, and Palm Beach, Florida.

But on Tuesday, New Jersey claims to Cease and desist-based National Realty Investment Advisors “fraudulently” sold $ 630 million worth of securities to “at least” 1,800 investors nationwide over the past four years And issued a “cease and desist” order.

Rather than relying on cash flow revenues, the State Securities Office says that company executives use investor money to pay other investors, saying, “Millions of dollars of investor money are a luxury for families. It was discovered that it had been diverted to make a payment, the State Justice Office said.

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This included paying for the unemployed work of the wife of portfolio manager Thomas N. Salzano, who was charged with fraud by federal authorities last year.

According to New Jersey officials, executives hired “family-owned or controlled companies,” including a construction company whose chief financial officer was Sarzano’s son.

NRIA and its substance have not been charged with criminal charges, but have been investigated by federal agencies and authorities in three states. Order on page 63 The New Jersey Attorney General’s office itemized what it called “illegal activity” and required the company to “cease and desist” its engagement.

“The identified misconduct is … impressive,” Deputy Attorney Pratokin said in a statement.

It was unclear whether NRIA, which applied for bankruptcy protection, would appeal the order. Company officials did not comment immediately.

The order has banned NRIA “from engaging in the acts described in the order itself, or from further violations of securities law,” and has publicly announced allegations of fraud, the Attorney General’s office said. It was unclear how the order would be enforced.

NRIA has roots in Philadelphia and was founded in 2006 to build and renovate homes to take advantage of the city’s 10-year tax cut program for new construction. NRIA said it has built more than 1,100 units in various regions, including the Bridgeview Complex in South Philadelphia and Ortlieb Square in the Northern Liberties.

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In 2018, the company launched a market offering called the NRIA Partners Portfolio Fund, defeating the biggest developments. Philadelphia owns a vast, unconstructed waterfront property. Hudson and Bergen counties, New Jersey. Brooklyn; and Palm Beach.

” read more: New Nagaya entourage planned at the former Foxwoods site on the South Philadelphia waterfront

Inquirer reported in September that the company had Conduct major marketing campaigns Since the beginning of 2019, we have spent an estimated $ 9 million on TV advertising for the fund.Almost all of them are mostly Tucker Carlson tonight When Hannity show. According to the Attorney General’s office, we painted signs at the entrances of the Lincoln and Holland Tunnels.

However, New Jersey officials said they acted to “hide the company’s poor performance,” such as using investor funds for annual payments, rather than making significant profits from the company’s initiative. The company filed for bankruptcy on June 7.

In response to The Inquirer’s question, in September NRIA was informed that it was part of a special “buy, build, sell” strategy and investors were informed of how the company would make contributions. Said that.

However, an order issued on Tuesday said investors were not informed that their money would go to other investors.

State officials also said the company appealed to “straw buyers to generate non-existent sales” and violated “generally accepted accounting principles” in reporting revenue.

They added that NRIA made a large investment in junk bonds with investor money to make up for the lack of profits.

In addition to NRIA and Portfolio Fund, orders named NRIA Capital Partners Inc. and NRIA Structured Credit Strategies LLC.

Amy G. Copleton, deputy director of securities, said NRIA and its entities “provided investors with securities opportunities that sounded too good.”

“And it was.”

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