SEC Charges Former New Jersey Police Officer with Fraudulent Crypto Asset Scheme

John A. DeSalvo, a former New Jersey State Correctional Police Officer, was charged by the Securities and Exchange Commission today with fraudulently raising funds through the unregistered offering of the Blazar Token, a crypto asset security he created. The SEC claims that from November 2021 to May 2022 DeSalvo raised at least $620,000 from 220 investors who were promised extraordinary returns and told that the token was registered with the SEC. Furthermore, the SEC's complaint alleges that DeSalvo targeted law enforcement and first responders in this scheme and misappropriated and misused the investment funds, some of which he used for personal expenses. Additionally, the complaint alleges an earlier fraud scheme beginning in late January 2021 in which DeSalvo solicited 17 investors primarily through social media to invest in stocks, options, and crypto asset securities; he lost about $17,000 of their funds through speculative investments and misappropriated the remaining $78,000. The SEC has requested injunctive relief, disgorgement plus prejudgment interest, and civil penalties from DeSalvo. Moreover, the U.S Attorney's Office for the District of New Jersey announced criminal charges against him.