National Realty Investment Advisors Llc
BBB’s Business Review For National Realty Investment Advisors, LLC that includes background information, consumer experience, BBB Accreditation status, BBB Rating, customer reviews, complaints, business photos, business videos, discount coupons, licensing, hours of operation, methods of payment, refund and exchange policy, business management, government actions, advertising practices, and more for National Realty Investment Advisors, LLC in Secaucus, NJ.
Did You Invest Money In National Realty Investment Advisors And / Or Related Funds Potential Claims For Compensation
Investor attorneys Alan Rosca and Paul Scarlato are currently evaluating potential claims for compensation on behalf of victimized NRIA investors against certain financial industry entities that may be responsible for any losses they suffered in National Realty Investment Advisors, and / or its affiliated funds. Their focus is on financial service businesses that employed licensed financial professionals who recommended NRIA investments to their customers and feeder funds that funneled investor money into NRIA investments.
Financial industry companies typically have a duty to monitor their operations and reasonably supervise their associated persons to prevent violations of the securities rules and regulations, said attorney Rosca. When financial industry businesses fail in their duties, they may be held liable to victims of their associated persons, based on the particular facts specific to each case, attorney Rosca indicated.
Attorneys Rosca and Scarlato have developed a nationwide practice assisting investors around the country and around the world to seek compensation for their losses arising out of investment-related misconduct, investment fraud and Ponzi schemes. They are in touch with NRIA investors and are evaluating their options for compensation.
It Is Under Investigation By The Fbi
Investors have lost a combined $630 million since the Secaucus. New Jersey-based company started selling investment membership units to the public, promising large returns of up to 20%. However, the firm has now been under investigation by the FBI and the New Jersey Bureau of Securities. According to the Bureau, the company illegally sold $630 million in securities to investors mainly small investors and funneled the money to its executives and their families.
The FBI has uncovered a series of illegal activities at the bankrupt firm, which focused on townhome, condo, and multifamily development. As of March 2020, the company had more than $1.25 billion in assets under management. The private companys website lists more than a dozen projects in Brooklyn and numerous developments outside the city. The FBI has charged one of the companys portfolio managers, Thomas Nicholas Salzano, also known as Nick Salzano, with aggravated identity theft and wire fraud.
Although Salzano is the only employee charged in the scandal, the investigation has spread to the entire organization, which is a huge setback for the firms reputation. According to Bloomberg, the firm has lost $1.6 billion since 2015. Thankfully, the FBI is not actively investigating the NRIA leadership, but it has begun to investigate all of them. While its never easy to work with the FBI, the companys leadership is now being investigated, and the scandals could cause further harm to the company.
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Thomas Salzano Allegedly Involved In Previous Fraudulent Schemes Sanctioned By The Federal Trade Commission
NorVergence was a Newark, New Jersey based company allegedly co-founded in 2001 by Thomas Salzano. Anthony Scutaro was also allegedly involved in NorVergence as the Senior Vice President of Application Screening.
According to an article by NBC News, although NorVergence reportedly existed only for three years, the company hired 1,800 employees, and had revenues of $143 million.
On November 4, 2004, the Federal Trade Commission filed a Complaint charging NorVengence with defrauding consumers through sale of its Matrix telecom service.
According to the FTC complaint, NorVergence allegedly cold-called small businesses offering to save them 30% in telecom bills by installing a so called black box referred to as Matrix or Matrix 800. The FTC reportedly found that the black box was a fraud and no more than a firewall and router. The customers were allegedly charged between $400 and $5,700 per month for each Matrix 850 box, and many of them signed five-year contracts, the FTC alleged. According to the New Jersey regulators, the Matrix was a combination of a Ponzi scheme, as it involved paying existing investors with the money of new investors.
Sonn Law Group Has Heard From Hundreds Of Concerned National Realty Investment Advisors Investors Following Reports That The Company Has Filed For Bankruptcy As It Faces Investigations From The Fbi And Sec
If you have invested in National Realty Investment Advisors we encourage you to complete this short form to receive updates and information from our firm related to your best options for making a financial recovery. Our law firm is currently investigating the NRIA case to determine whether a lawsuit can be filed to recover investor losses.
Sonn Law Group is a consumer protection and class action law firm that specializes in helping defrauded investors recover their losses. For a free consultation with an attorney at our firm complete this form or call us at .
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Nria Investor Funds Allegedly Used In Marketing Campaigns To Conceal Information About Salzano
According to the New Jersey cease-and-desist order, a total of $440,000 of investor money was allegedly used to pay marketing companies known as Web Marketing, Ably Soft Private Limited, FATbit Technologies, among others, to cover the information about Thomas Salzanos past. The role of these companies was to allegedly divert investors internet searches aways from the information about Salzanos past regulatory sanctions.
The order alleges that NRIA hired relatives of Grabato to create companies with the name similar to NorVergence, and websites for Peter Salzano, and Thomas Salzano to allegedly suppress negative links. The regulators also allege that Anthony Scuttarro changed his name to Scutaro to allegedly disassociate himself from NorVergences history.
New Jersey Accuses Real Estate Development Company Of Defrauding 1800 Investors
Shepherd Smith Edwards and Kantas is investigating claims of losses by 1,800 investors. These investors may have been fraudulently sold at least $630M in securities by National Realty Investment Advisors between 2018 and 2022. The New Jersey-based real estate development company filed for Chapter 11 bankruptcy protection on June 8, 2022.
An affidavit filed in US bankruptcy court notes about $600M in claims against approximately $300M of assets. On June 21, 2022, the New Jersey Bureau of Securities ordered NRIA to stop operations and accused the company of fraudulent investment sales. Investors were purportedly fraudulently sold units in the NRIA Fund. The minimum investment that investors could make was $100K.
Other entities named in the order include:
- NRIA Partners Portfolio Fund I, LLC
- NRIA Capital Partners, Inc.
- NRIA Structured Credit Strategies, LLC.
National Realty Investment Advisors and its principals allegedly marketed the NRIA Fund as a billion-dollar-plus real estate development enterprise involving different kinds of residences and mixed-use rental development. Investors were told that this was a chance to buy property or land at below market value prices that would then be developed and sold at a considerable profit.
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Whistleblower Reportedly Alleged Fraud At Nria In August 2020
According to an April 2021 report published by the Hudson County View, on August 7, 2020, a whistleblower identified as Barry Minkow, filed a complaint with the SEC alleging that NRIA is a Ponzi/pyramid scheme. The Minkow complaint compares NRIA with the $1.2 Billion Woodbridge fraud and the $69 million Pinnacle Redevelopment Real Estate fraud. The complaint further alleges that NRIA was offering untenable returns, that the promised returns were not normally and regularly experienced in the real estate industry, that the values on real estate holdings appear to be over inflated, and that the investment is touted as virus proof, downplaying the risk of investment.
On October 9, 2020, the SECs New York office announced through a subpoena addressed to Minkow that it has formally started a non-public, fact-finding investigation into NRIA, the Hundson County Review reports.
Portfolio Manager Of Real Estate Investment Fund Charged With Using Sham Loan Document To Obtain Money From Investor
NEWARK, N.J. A portfolio manager and senior independent executive advisor at a Secaucus-based real estate fund was charged with using a sham loan document to defraud an investor of hundreds of thousands of dollars, Acting U.S. Attorney Rachael A. Honig announced today.
Thomas Nicholas Salzano, aka Nick Salzano, of Secaucus, New Jersey, was charged by complaint with one count of wire fraud and one count of aggravated identity theft. Salzano appeared by videoconference on March 4, 2021, before U.S. Magistrate Judge Leda Dunn Wettre and was released on a $100,000 unsecured bond.
According to documents filed in this case and statements made in court:
Near the end of 2018, Individual 1 approached Victim 1 about a supposed new opportunity to become a joint venture partner with NRIA in a property in North Bergen, New Jersey, allegedly owned by NRIA. According to Individual 1, the minimum investment was $300,000, and Victim 1 could use her original $150,000 investment in the NRIA fund toward the required $300,000 investment in the North Bergen property.
Victim 1 asked Individual 1 for more information on the North Bergen property. Individual 1 sent Victim 1 materials purporting to show that NRIA intended to obtain a $25 million bank loan on the property. Victim 1 asked for information on the loan. Individual 1 then referred Victim 1 to Salzano.
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Nria Bankruptcy: Timeline Of Significant Events
- The New Jersey Bureau of Securities orders NRIA to cease operations and asserted that the company fraudulently sold over $600 million in securities.
- Judge John K. Sherwood United States Bankruptcy Judge for the District of New Jersey approves a motion filed by National Realty Investment Advisors debtors to allow private sales of eight condominiums and units which are estimated to be worth more than $20 million. The debtors agreed not to pay any broker or sale commissions and to escrow the proceeds pending further orders of the court.
- New Jersey-based National Realty Investment Advisors files for Chapter 11 protection in federal court on June 8, 2022.
- The filing was submitted on behalf of National Realty Investment Advisors by Brian Casey of the real estate financial advisory firm The Casey Group.
- According to the affidavit filed in the United States Bankruptcy Court in the District of New Jersey there is roughly $600 million in claims against about $300 million of assets. Read the affidavit here.
- NRIA CEO Rey Grabato resigns from the company.
- The Philadelphia Inquirer reports that NRIA is under investigation by the FBI, the SEC, and financial regulators in Alabama, Illinois, and New Jersey.
- NRIA portfolio manager Nick Salzano was arrested by the FBI after a long standoff with agents at his home in New Jersey.
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A Big Builder In Philly Advertises Huge Investor Returns On Radio And Fox News Now The Fbi And Sec Are Tuning In
NRIA’s ads often appear on Fox News. Not disclosed to viewers: The FBI and the U.S. Securities and Exchange Commission, with regulators from three states, are investigating the firm.
National Realty Investment Advisors is known in Philadelphia for the thousand-plus rowhomes it has built for investors to rent out and as the owner of one of the citys biggest development sites, the swath of Delaware River waterfront land where part of a sprawling casino complex was once envisioned.
Outside the city, the Secaucus, N.J.-based firm might be better recognized from its advertising blitz on Fox News Tucker Carlson show and elsewhere that has helped it raise more than half a billion dollars by promising investors market-beating returns from projects up and down the East Coast.
But there is much that NRIA hasnt highlighted in its messaging.
Federal prosecutors have charged a key executive, Thomas Nicholas Salzano, 63, with fraud, saying he used phony loan papers to try to reel in an investor. Salzano helped lead NRIA after he settled with federal regulators in a previous financial fraud.
The FBI and the Securities and Exchange Commission, as well as financial regulators from three states, are investigating the firm. NRIA itself cited those probes in a recent prospectus for potential investors. No criminal charges or civil complaints have been made against the company.
NRIA said it has sold more than $136 million in real estate this year, with more sales in the pipeline.
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First National Realty Partners Fees
FNRP doesn’t have a set fee schedule since fees vary depending on the property. Typically, sponsors charge an annual asset management fee of 1-2% for this type of commercial real estate deals. Other fees can include acquisition fees, disposition fees upon sale, and ongoing property management fees.
You can view a fee breakdown in each offering document from First National Realty Partners.
It Used Investors Money To Pay Off Other Investors
An investor rights law firm based in Chicago is investigating claims against the New Jersey-based company National Realty Investment Advisors LLC. The company allegedly used investors money to pay off other investors and executives. The company is allegedly guilty of fraud, investment loss, and unsuitability. The firm has since filed for bankruptcy. Investors who purchased securities from the company should consider the risks involved before making a decision.
The Securities and Exchange Commission has filed a complaint against the companys principals for a Ponzi scheme. The companys officers diverted millions of dollars from investors to lavish payments. They also hired family-owned and controlled companies to perform their work. Salzanos son served as the companys Chief Financial Officer. Salzanos wife received a salary for a no-show job. He hired family members to work for his company as construction contractors.
Securities and Exchange Commission v. Thomas Nicholas Salzano, 2:21-cv-12189
The Securities and Exchange Commission today charged Thomas Nicholas Salzano, of Secaucus, New Jersey, with using a sham loan document containing a forged signature in a fraudulent attempt to entice a $150,000 investment in a real estate joint venture located in New Jersey.
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National Realty Investment Advisors: Other Recent Key Events
Other key events that investors of National Realty Investment Advisors products, including the NRIA Fund, include:
- : The Federal Bureau of Investigation arrests NRIA portfolio manager Nick Solzano.
- : The Philadelphia Inquirer reports that the real estate development company is under investigation by regulators in New Jersey, Illinois, and Alabama, as well as the FBI and the US Securities and Exchange Commission .
- : Rey Grabato, NRIAs CEO, resigned.
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Role Played By Financial Service Company Investigated By Rosca Scarlato Llc Attorneys
One of the potential recovery venues under evaluation by the Rosca Scarlato attorneys is related to financial service companies involved in selling NRIA investments. Evidence reviewed by attorneys Rosca and Scarlato suggests that some of NRIA investors may have been recommended the NRIA investment opportunity by registered investment professionals.
If you invested in NRIA and / or its affiliated funds at the recommendation of an investment professional please contact attorneys Alan Rosca or Paul Scarlato for a free, no-obligation evaluation of your loss recovery options, toll-free at , email , or leave a message by using a contact form on this webpage.
These general considerations are for informational purposes only and do not constitute legal advice. Such legal advice can only be offered once the attorneys discuss each investors situation, learn of the relevant facts and can tailor any advice to that investors facts. The NRIA Investor Center is not affiliated with National Realty Investment Advisors or related entities.
Former Execs Of Real Estate Firm Nria Are Charged In Alleged $650 Million Ponzi Scheme
Two top officials at developer National Realty Investment Advisors have been charged in what federal prosecutors describe as a $650 million Ponzi scheme that defrauded more than 2,000 investors by making false claims about the profitability of its real estate ventures.
Rey E. Grabato II, 43, NRIAs president and CEO, and Thomas Nicholas Salzano, 64, the companys unofficial leader, were charged in an 18-count indictment with conspiracy to commit securities fraud, wire fraud, conspiracy to defraud the United States, and other offenses, the U.S. attorneys office for the District of New Jersey said in a news release Thursday.
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President In Name Only
Grabato was president of NRIA while Salzano was the firms shadow chief executive officer, according to federal prosecutors. In reality, Salzano ran the day-to-day operations and gave directions to Grabato, as they ripped off investors over a four-year span, funneling a large amount of the millions into a lavish lifestyle for the duo and their relatives.
From February 2018 through January, Salzano and Grabato used lies, elaborate false advertising campaigns and phony documents to cheat investors and potential investors of the NRIA Fund, even holding meetings and presentations, prosecutors said.
Salzano concealed his true role calling the shots because of a prior guilty plea to cheating small businesses out of state through a Newark-based telecommunications company, prosecutors said. He put a luxury townhome and high-end cars in Grabatos name and paid for them with investor cash.
