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New Jersey developer's shadow CEO, Thomas Salzano, has been sentenced to 12 years in prison for his role in a massive Ponzi scheme. Salzano, leader of National Realty Investment Advisors (NRIA), received an $8.5 million judgment and was ordered to pay over $507 million in restitution to victims. He also faces three years of supervised release and a $6.5 million bill to the IRS.

    Salzano's greed and disregard for the law led to staggering losses exceeding $650 million, according to U.S. Attorney Philip Sellinger. Salzano had pleaded guilty in February to securities fraud, conspiracy to commit wire fraud, and conspiracy to defraud the United States. He admitted to misleading investors while misappropriating millions of dollars.

    The scheme involved a nationwide marketing campaign featuring billboards, radio, and TV ads, with falsified documents portraying NRIA as a solvent profit generator. Salzano received the maximum penalty under his plea deal, which allowed for a sentence between 8 and 12 years in prison. He was arrested by the FBI in March 2021 after a standoff outside his New Jersey home.

    NRIA filed for Chapter 11 protection three years ago, listing assets worth $50-100 million and liabilities of $500-1 billion. The company's CEO, Rey Grabato II, was charged alongside Salzano in October 2022.