Day: August 23, 2023

Atlantic City, Fire and Emergency Service

NJ Corrections Officer Busted For Cryptocurrency Fraud Schemes Alleged To Have Targeted Law Enforcement And First Responders

August 23, 2023

A former New Jersey corrections officer was arrested today for orchestrating two different fraud schemes, including a cryptocurrency scheme that resulted in losses of more than $600,000, U.S. Attorney Philip R. Sellinger announced.

John DeSalvo, 47, of Marmora, New Jersey, is charged by criminal complaint with two counts of wire fraud, two counts of securities fraud, and two counts of money laundering related to the two fraud schemes. He is scheduled to appear this afternoon before U.S. Magistrate Judge André M. Espinosa in Newark federal court.

“This defendant, a former New Jersey corrections officer, is alleged to have committed two brazen investment fraud schemes in which he falsely promised huge returns to obtain hundreds of thousands of dollars from unsuspecting investors,” U.S. Attorney Sellinger said. “In one scheme, DeSalvo is alleged to have targeted law enforcement and first responders to invest in a digital token that he falsely claimed was SEC-approved and listed on cryptocurrency exchanges. In the other, he is alleged to have obtained investments by promising extraordinary rates of return that we allege were too good to be true. Once DeSalvo got his investors’ money, he is alleged to have spent it on himself, paying personal expenses and funding his own investments. This Office is committed to rooting out investment and securities fraud and protecting investors. By today’s charges, we intend to hold this defendant accountable for these alleged fraud schemes and prevent him from potentially victimizing anyone else.”

“We allege DeSalvo created and marketed a cryptocurrency to first responders as a ‘crypto pension’ that could supplement their existing pensions,” FBI – Newark Special Agent in Charge James E. Dennehy said. “Our investigation shows instead of actually making the rate of return he boasted about, he allegedly used hard-earned money from firefighters, police officers, EMTs and other public servants as his personal bank account. We are asking anyone who may believe they are a victim of DeSalvo to please reach out to the FBI at 1-800-CALL-FBI.”

According to documents filed in this case and statements made in court:

The Blazar Token Fraud

DeSalvo was the creator and promoter of a digital token known as “Blazar Token,” (Blazar) which DeSalvo marketed to police, fire personnel, EMTs, and other first responders as a “crypto pension” that could be used to supplement investors’ existing pension plans. DeSalvo promised investors that Blazar would offer “more stability than any other token” and that the value of Blazar would “continue to rise over time similar to any investment fund, only at a much higher rate of success.

”Beginning in late 2021, DeSalvo used social media platforms to fraudulently solicit investments in Blazar through a series of misrepresentations including that: Blazar was in the process of becoming, or was already, a securitized token approved by the Securities and Exchange Commission; and Blazar could be purchased through payroll deductions and ACH transactions. DeSalvo additionally falsely told investors that Blazar had been approved for inclusion on several well-known cryptocurrency exchanges and guaranteed investors rates of return of more than 20 percent with “ZERO risk.

”In total, DeSalvo raised more than $620,000 from more than 200 investors in Blazar. After receiving investor funds, DeSalvo frequently used the funds for various illicit purposes unrelated to Blazar including personal expenses, day-trading in various volatile cryptocurrencies, and payments to prior investors in the manner of a Ponzi scheme.

In May 2022, DeSalvo sold off more than 41 billion of his own Blazar tokens, which caused the price of the token to drop precipitously. The value of Blazar never recovered, causing most investors to lose their entire investments.

The Brokerage-1 Fraud

Between January 2021 and May 2021, DeSalvo managed and solicited investment in an investment group through Brokerage-1, an online trading platform. DeSalvo marketed the investment group largely through social media posts in which DeSalvo falsely touted his success as an investor. DeSalvo claimed to potential investors, “I have been averaging close to 1200 % over the last 2 years. I am in the top 1,000th percent in the world. That’s the truth, the return rates I have been averaging are so high that I have people throwing money at me to invest.

”In total, DeSalvo solicited approximately $100,000 in investments from approximately 20 individuals for the investment group. After receiving the funds, DeSalvo engaged in trading activities for a brief period of time before transferring all the funds out of the investment group’s account at Brokerage-1 and into personal accounts held by DeSalvo at Brokerage-1 and Coinbase. DeSalvo then used the funds for various non-investment purposes such as credit card payments, personal trading in volatile cryptocurrencies, and payments to a contractor who performed work on DeSalvo’s personal residence.

After draining the investment group’s account, DeSalvo advised the investment group investors that their funds had been lost due to poor market conditions and provided the investors with false trading records purporting to show the trading activity that DeSalvo engaged in on behalf of the investment group.

The counts of wire fraud carry a maximum potential penalty of 20 years in prison and a fine of $250,000. The counts of securities fraud carry a maximum potential penalty of 20 years in prison and a fine of $5 million. The counts of money laundering carry a maximum potential penalty of 20 years in prison and a fine of $500,000.

The U.S. Securities and Exchange Commission (SEC) also filed a civil complaint against DeSalvo today based on the same conduct.

U.S. Attorney Sellinger credited special agents of the FBI – Newark Atlantic City Resident Agency, under the direction of Special Agent in Charge Dennehy, and detectives from the New Jersey Division of Criminal Justice, Cyber Crimes Bureau, under the direction of Acting Director Derek Nececkas, with the investigation leading to the charges.

The government is represented by Assistant U.S. Attorney Anthony Torntore, Chief of the U.S. Attorney’s Cybercrime Unit in Newark.

The charges and allegations in the complaint are merely accusations, and the defendant is considered innocent unless and until proven guilty.

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Defense counsel: Saverio Viggiano Esq., Assistant Federal Public Defender, Newark

DeSalvo.ComplaintDownload

Suspect Arrested in Cryptocurrency Investment Fraud Targeting First Responders

August 24, 2023 — UPDATE

TRENTON — The Attorney General’s Office today announced that a retired state Department of Corrections Lieutenant from Atlantic County has been arrested, after allegedly targeting and defrauding first responders he convinced to invest in a purported new cryptocurrency investment fund.

John A. DeSalvo, 47, of Linwood, a former resident of Marmora, N.J., was arrested on August 23, 2023, by investigators from the state Division of Criminal Justice (DCJ) and the Federal Bureau of Investigation (FBI). The charges stem from an investigation by the Cybercrimes Unit of DCJ, the New Jersey Division of Taxation, the U.S. Attorney’s Office for the District of New Jersey, the FBI, and the U.S. Securities and Exchange Commission (SEC).

During the course of the investigation, it was learned that DeSalvo, who retired from the Department of Corrections on May 1, 2010, marketed to his victims a cryptocurrency token he called Blazar, representing to prospective investors that their returns from it would supplement the New Jersey pension system. However, this token did not have any real value. The victims relied upon deceptive representations made by DeSalvo and provided him with money for investment purposes. In reality, DeSalvo profited from the capital raised by the victims, who would not have provided him with money if they were aware that the token had no value.

“This defendant allegedly used his position as a former law enforcement officer to win the trust of investors and to victimize fellow first responders,” said First Assistant Attorney General Lyndsay V. Ruotolo. “The allegations are that he intentionally targeted people who dedicate their lives to public service and risk their lives for the public good.”

“John DeSalvo allegedly embellished how much his investors stood to gain and falsely guaranteed inflated returns,” said Director of the Division of Criminal Justice J. Stephen Ferketic. “Today’s arrest demonstrates that the men and women of the Division of Criminal Justice are committed to protecting the people of New Jersey from fraudulent investment schemes like the one alleged in this case.”

DeSalvo is facing the following charges:
• Theft by Deception— 2nd Degree

• Deceptive Business Practices — 4th degree

Convictions on second-degree charges carry a sentence of five to 10 years in state prison and a fine of up to $150,000. Fourth-degree charges carry a maximum sentence of 18 months in New Jersey State Prison and a fine of up to $10,000.

The investigation was led by Detective Charles Pusloski and Detective John Luko of the Cybercrimes Unit of DCJ and Special Agent Jamie McMahon of the FBI, with valuable support from the U.S. Consumer Fraud Protection Bureau. The case is being prosecuted by Deputy Attorney General Michael J. Forte of the Cybercrimes Unit, under the supervision of Unit Deputy Chief Lisa Rastelli, Chief Jillian Carpenter, DCJ Deputy Director Derek Nececkas, and DCJ Director J. Stephen Ferketic.

Investigators urge anyone who may have been a victim of this defendant’s alleged scam to contact the Division of Criminal Justice by calling 1-800-396-2310.

The charges are merely accusations and the defendant is presumed innocent unless and until proven guilty in court.

Manchester, Ocean County

Vehicle Fire Spreads To House In Manchester Township

August 23, 2023

MANCHESTER, NJ (OCEAN)–On August 23, 2023, at approximately 1:37 p.m., Manchester Emergency Services responded to a vehicle fire in the driveway of an Addlestone Lane residence located in the River Point section of town.  Upon arrival, the vehicle was observed to be fully involved in flames which ultimately spread to the residence causing the home to catch on fire.  The homeowners had already evacuated the home and nearby residences were evacuated by police as a precaution.  As a result of the fire, the residence sustained damage and the home was subsequently deemed uninhabitable by the Manchester Township Building Inspector.  There were no injuries resulting from this incident.        

Responding to, and assisting at the scene, were the Manchester Police Department, Manchester Fire Department, Manchester Township Volunteer Fire Department, Ridgeway Volunteer Fire Department, Joint Base Fire Department, Whiting Fire Department, Toms River Fire Department, the Ocean County Fire Coordinator, the Ocean County Fire Marshall, and Manchester Emergency Medical Services.  This incident is being investigated by the Ocean County Fire Marshall and the Manchester Police Investigations Bureau.   

Mercer County, Trenton

Governor Murphy Signs First-in-the-Nation Legislation to Hold Gun Traffickers Criminally Liable for Resulting Deaths and Injuries

New Initiative Continues the Murphy Administration’s Steadfast Commitment to Combatting Gun Violence

August 23, 2023

TRENTON, NJ (MERCER)–Expanding on New Jersey’s nation-leading gun safety laws, Governor Phil Murphy today signed S3150, which establishes strict liability criminal penalties for gun traffickers when an illegally trafficked firearm provided by them is used in a crime that results in serious or significant bodily injury or death.

Under the first-in-the-nation legislation, also known as the “Real Accountability for Consequences of Unlawful Trafficking of Firearms Act,” a trafficked firearm used for a crime resulting in a death may be charged with a first-degree crime. Similarly, a person who commits a firearm trafficking violation resulting in serious or significant bodily injury may be charged with a second-degree crime. The bill will also allow New Jersey prosecutors to charge out-of-state traffickers, who have supplied around 80% of guns used for crimes in our state, for the harms their illegal out-of-state conduct causes in New Jersey.

The legislation is modeled on similar, longstanding laws that impose strict criminal liability on drug dealers for overdose deaths caused by their illicit products.

“Far too many New Jerseyans live with the daily fear that people in their communities who cannot legally possess guns can illegally obtain firearms and cause great harm,” said Governor Murphy. “This bill allows us to hold those who illegally traffic those guns accountable for the harm that those weapons are used to cause. With today’s new law, New Jersey will become the first state in the nation to go after illegal gun traffickers in this way.  This is yet another historic step to protect our children and families from gun violence, and we will continue to support long-term solutions that will break the cycle of violence once and for all.”

Today’s strong anti-trafficking bill builds on the Governor’s commonsense record of gun reforms, which has positioned New Jersey as a leader in gun safety. Since the beginning of the Murphy Administration, more than a dozen steps have been taken to address gun violence in the state. In July 2022, Governor Murphy signed seven comprehensive gun safety bills, his third significant gun safety package signing since taking office in 2018.

In collaboration with the Office of the Attorney General, more actions have been taken beyond the passing of legislation to address violence. Last week, it was announced that $15 million would be made available through a competitive grant process to support Community-Based Violence Intervention (CBVI) Programs throughout the state. The program now stands at a $40 million investment in state and federal funds since 2021. CBVI programs use interventions and protective activities in communities and among populations associated with risk factors for exposure to violence. Through this public health approach to interrupt cycles of violence, and with a focus on reducing gun violence, CBVI initiatives include a range of strategies: mentoring programs, street outreach, trauma support services, de-escalation among high-risk individuals, targeted afterschool programs, job training, and more.

The first prime sponsors of today’s bill, which passed unanimously through both houses, include Senator Troy Singleton and Assemblywoman Linda Carter.

“Under the leadership of Governor Murphy and Attorney General Platkin, we are strengthening New Jersey’s existing status as a national leader in combating gun violence,” said First Assistant Attorney General Lyndsay V. Ruotolo. “The legislation signed today will provide more tools for prosecutors and law enforcement across the state to hold firearms traffickers accountable and make our communities safer.”

“Approximately 80 percent of crime guns traced in New Jersey come from out of state. We must continue to hold gun traffickers responsible for their role in perpetuating gun violence,” said Senator Troy Singleton. “Increasing the penalties of gun traffickers will aid in deterring and holding traffickers responsible for the risk they pose to residents. This law will specifically target traffickers that pose a severe threat to the safety of residents through illegal gun transfers and sales.”

“Those responsible for illegal firearm trafficking must be held accountable for the consequences of their actions,” said Assemblywoman Linda Carter. “These individuals are responsible for putting dangerous weapons in the hands of wrongdoers, and they deserve to be held responsible when a life is lost due to their unlawful actions. We will be able to impose stricter penalties on firearm traffickers thanks to this law.”

“This bill is another victory for our citizens and public safety. I applaud the Governor’s and Sponsor’s efforts to address the horrific consequences of how easily criminals provide firearms to others who engage in acts of violence. This bill will better secure communities such as Trenton throughout the state.  This law will give our law enforcement officers the tools to cut off illegal supply lines and help keep unregistered weapons off the streets and away from our neighborhoods,” said Trenton Mayor Reed Gusciora.

“This law sends a clear message to those who would participate and/or profit from the illegal distribution of firearms, that they can now be held accountable for the injuries sustained and the lives lost due to gun violence,” said Trenton Police Department Director Steve Wilson.

“I want to thank the Governor and the Legislature for passing such an important bill for the safety of all New Jerseyans. It’s very important across our state that we address guns that are sold illegally and taking the lives of our youth. The illegal distribution of guns is destroying our communities and today’s bill signing is a step towards holding illegal traffickers accountable for their actions,” said Pastor John Taylor of Friendship Baptist Church.

Photos by: Brian McCarthy

Mayor Reed Gusciora, along with several members of Trenton’s City Council and Police Director Steve Wilson, joined Governor Phil Murphy as he expanded on New Jersey’s nation-leading gun safety laws, by signing S3150. The new legislation will establish strict liability criminal penalties for gun traffickers when an illegally trafficked firearm provided by them is used in a crime that results in serious or significant bodily injury or death. 

“This bill is another victory for our citizens and public safety. I applaud the Governor’s and Sponsor’s efforts to address the horrific consequences of how easily criminals provide firearms to others who engage in acts of violence. This bill will better secure communities such as Trenton throughout the state.  This law will give our law enforcement officers the tools to cut off illegal supply lines and help keep unregistered weapons off the streets and away from our neighborhoods,” Mayor Gusciora said. 

The law, also known as the “Real Accountability for Consequences of Unlawful Trafficking of Firearms Act,” a trafficked firearm used for a crime resulting in a death may be charged with a first-degree crime. Similarly, a person who commits a firearm trafficking violation resulting in serious or significant bodily injury may be charged with a second-degree crime. The bill will also allow New Jersey prosecutors to charge out-of-state traffickers, who have supplied around 80% of guns used for crimes in our state, for the harm their illegal out-of-state conduct causes in New Jersey. 

The legislation is modeled after similar laws that impose strict criminal liability on drug dealers for overdose deaths caused by their illicit products. 

“Far too many New Jerseyans live with the daily fear that people in their communities who cannot legally possess guns can illegally obtain firearms and cause great harm,” said Governor Murphy. “This bill allows us to hold those who illegally traffic those guns accountable for the harm that those weapons are used to cause. With today’s new law, New Jersey will become the first state in the nation to go after illegal gun traffickers in this way.  This is yet another historic step to protect our children and families from gun violence, and we will continue to support long-term solutions that will break the cycle of violence once and for all.” 

Trenton Police Department Director Steve Wilson added, “This law sends a clear message to those who would participate and/or profit from the illegal distribution of firearms, that they can now be held accountable for the injuries sustained and the lives lost due to gun violence.”  

“I want to thank the Governor and the Legislature for passing such an important bill for the safety of all New Jerseyans. It’s very important across our state that we address guns that are sold illegally and taking the lives of our youth. The illegal distribution of guns is destroying our communities and today’s bill signing is a step towards holding illegal traffickers accountable for their actions,” said Pastor John Taylor of Friendship Baptist Church.  

Mercer County, Trenton

Victim From Stuyvesant Avenue Shooting Has Died

August 23, 2023

TRENTON, NJ (MERCER)–The Mercer County Prosecutor’s Office reported that the victim from the August 19, 2023 Stuyvesant Avenue shooting has died.  The victim is Taquan Foxworth, 29, of Trenton.  The Mercer County Homicide Task Force is investigating.

On August 19, 2023 Trenton Police Department, Det. Lt. Nathan B. Bolognini told MidJersey.news that police received a ShotSpotter activation for the area of 763 Stuyvesant Avenue for 13-rounds fired early that morning. Police located the scene in front of 802 Stuyvesant Avenue and casings on the side of 801 Stuyvesant Avenue. A 29-year-old male Victim was transported by private vehicle to the hospital in critical condition. The Shooting Response Team is investigating the shooting.

This is the 20th homicide in the City of Trenton for 2023. The last homicide was over a month and a half ago on July 1, 2023 where Precious Saunders, 32, of Trenton was allegedly shot by her boyfriend, Jeremy Ratliff, 29, of Trenton, New Jersey. Ratliff has been charged with first-degree murder and second-degree possession of a firearm for an unlawful purpose.

Trenton Police Investigate Early Morning Shooting

Names of the 2023 Trenton Homicide Victims

  1. 1/16/2023 Donnell Williams, 29, Trenton, Shooting.
  2. 2/12/2023 Stephanie Vil, 34, of Burlington, Shooting.
  3. 2/16/2023 Khalil Glanton, 23, Trenton, Stabbing.
  4. 3/24/2023 Harold Rosario, 19, Trenton, Shooting.
  5. 3/26/2023 Nyeisha Saunders, 41, Trenton, Shooting.
  6. 4/09/2023 Jhosse Tolentino, 23, Trenton, Shooting
  7. 4/12/2023 Jared Anderson, Trenton, Shooting (died May 29)
  8. 4/14/2023 Daniel Garvin, 46, Trenton, Shooting
  9. 4/20/2023 Ralph Conquest, 43, of Lawrence, Shooting
  10. 5/14/2023 Roger Martinez-Rodriguez, 27, Trenton, Stabbing
  11. 5/14/2023 Justin Reed, 24, of Ewing, Shooting (died May 22)
  12. 5/26/2023 Sherief Treadwell, 36, Trenton, Shooting
  13. 6/09/2023 Markell Biggs, 20, Trenton, Shooting
  14. 6/11/2023 Shaquan Brown, 23, Trenton, Shooting
  15. 6/15/2023 James Junior Journigan, 36, Shooting
  16. 6/15/2023 Louis Washington, 38, Trenton, Shooting, (died June 17)
  17. 6/19/2023 Ernest Denard, 61, Stabbing
  18. 6/22/2023 Guillermo Sanchez, Shooting
  19. 7/01/2023 Precious Saunders, 32, of Trenton
  20. 8/23/2023 Taquan Foxworth, 29, of Trenton, Shooting 8/19
Mercer County, Trenton

Firefighters Extinguish Car Fire Near Route 29 Tunnel

August 23, 2023

TRENTON, NJ (MERCER)–Around 8:35 a.m. Trenton firefighters responded to a car fire reported on Route 29 North Bound near the entrance to the tunnel. Firefighters arrived and quickly extinguished the fire. Expect traffic delays in the area until the vehicle is towed. Currently there is a 2-mile traffic delay into Hamilton Township and extends back to the I-295 interchange. South bound traffic is backed up to the ballpark.

Photos are screen captures from 511nj.org