SEC Investigates National Realty Investment Advisors (NRIA) For $630 Million Fraud

National Realty Investment Advisors (NRIA)

A cease and desist has been issued against the National Realty Investment Advisors (NRIA) by the New Jersey Bureau of Securities after the determination of a securities fraud from 2018 through 2022, amounting to approximately $630 million.

The NRIA Fund has 1,800 investors from around the country, 380 of them being from New Jersey, as revealed in the cease and desist order summary. The alleged fraud is said to involve selling membership units in the fund in the form of securities.

An investigation into the affairs of NRIA has been launched by Haselkorn & Thibaut, P.A., an investment fraud law firm. Our law firm has over 50 years of experience and represents investors across the country to recover investment losses due to broker fraud and bad investments.

People impacted by the fraud or who need advice on investment loss recovery from NRIA can call our experienced investment fraud lawyers at 1-888-902-6872 for a free consultation.

National Realty Investment Advisors is a bank

Acting Attorney General Matthew J. Platkin announced a cease and desist order against Secaucus-based National Realty Investment Advisors, LLC. The firm fraudulently sold $630 million worth of securities from 2018 to 2022 to at least 1,800 investors, with 380 of those coming from New Jersey. Arthur Scutaro, an executive vice president, and project manager of NRIA, is one of the company’s executives.

Despite the recent bankruptcy filing, it is unclear exactly how much money NRIA has lost on its projects. The developer, which has projects in Florida, Philadelphia, and New Jersey, has been under investigation by various federal agencies. Founder Brian Casey of The Casey Group, an independent real estate financial advisory firm, is overseeing the chapter 11 case for NRIA. If National Realty doesn’t reorganize soon, it will likely take years to repay investors.

The company acts as a middleman for real estate flippers. In exchange for its services, National Realty receives commissions from the sale of the land, loan spreads, construction fees, and maintenance fees. National Realty also charges a 3.5% fee on the equity of the project and charges monthly property-management fees of $7,500. So the average investor’s income would be a little under $1 million a year.

NRIA, a real estate investment management firm with more than $1.25 billion in AUM, filed a voluntary petition in bankruptcy court in New Jersey on June 7th. National Realty has a large portfolio of 30 completed, 3 near-completion, and 16 projects in planning stages. The total value of NRIA’s properties is $225 million, and future stabilized values are $1 billion. In other words, NRIA’s assets were worth billions when they were completed.

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 company’s website lists more than a dozen projects in Brooklyn and numerous developments outside the city. The FBI has charged one of the company’s portfolio managers, Thomas Nicholas Salzano, also known as Nick Salzano, with aggravated identity theft and wire fraud.

The company’s troubles started on Tuesday when it filed for chapter 11 protection in Newark. As of October 2016, it listed assets between $50 million and $100 million and liabilities ranging from $500 million to $1 billion. The company is also under investigation by the SEC. The investigation follows the revelation that the company misrepresented the properties to investors. The company also failed to pay investors as promised. According to HCV, Minkow recorded an 11-minute telephone conversation with NRIA’s senior project manager Brian Harrington, confirming that he was being paid with funds from new investors.

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 firm’s 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 it’s never easy to work with the FBI, the company’s leadership is now being investigated, and the scandals could cause further harm to the company.

It has acquired and developed more than 3,100 luxury residential units

Since its founding in 2006, National Realty Investment Advisors has delivered exceptional results in supply-constrained and high-barrier-to-entry urban markets. The firm has acquired and developed more than 3,100 luxury residential units and managed more than 2.30 million square feet, totaling $1.125 billion. The firm continues to deliver exceptional results, particularly in the urban market. For this reason, NRIA is consistently ranked among the top investment managers in the country.

The firm’s CEO, Brian Natwick, has over 25 years of experience in the real estate investment and development industry. During that time, he worked at the international accounting firm Ernst & Young. He grew the company from a single building with 2,700 units to a multibillion-dollar portfolio with more than 34,000 units. He is also a certified public accountant.

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 (SEC) has filed a complaint against the company’s principals for a Ponzi scheme. The company’s officers diverted millions of dollars from investors to lavish payments. They also hired family-owned and controlled companies to perform their work. Salzano’s son served as the company’s Chief Financial Officer. Salzano’s 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 (D.N.J. filed June 7, 2021)

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.

The FBI raided the Secaucus home of Nick Salzano, the firm’s portfolio manager. The FBI questioned him, and he eventually surrendered. He is now facing multiple federal investigations and is accused of trying to defraud investors by forging a multimillion-dollar loan guarantee from a Silicon Valley woman. During the investigation, the company’s other principals, including Brian Casey, have been placed under the microscope.

According to the complaint, NRIA used the money of nearly 2,000 investors to create shell companies and fund no-show jobs for its corporate leaders. The company did not disclose to investors how their money would be used, and investors were duped into believing that they would earn a return on their investment by investing in a real estate development firm. The company billed investors for development fees and used fake buyers to increase interest in the projects.

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