Litigation Releases (John A. DeSalvo)

U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 26599 / August 4, 2026

Securities and Exchange Commission v. John A. DeSalvo., No. 23-cv-8092-RMB-EAP (D.N.J. filed Aug. 23, 2023)

SEC Settles Case Against Former New Jersey Corrections Officer Charged in Alleged Crypto Offering and Investment Fraud Schemes

On August 4, 2026, the Securities and Exchange Commission filed a consent and proposed final judgment in the U.S. District Court for the District of New Jersey as to defendant John A. DeSalvo, a former New Jersey Corrections Officer, in connection with a previously filed action alleging that DeSalvo engaged in crypto offering and investment fraud schemes.

The Commission's complaint, filed on August 23, 2023, alleges that DeSalvo fraudulently raised at least $623,888 from approximately 222 investors in connection with the so-called Blazar Token. As the complaint alleges, DeSalvo claimed that the Blazar Token would replace traditional state pension systems and falsely told investors that Blazar Token was registered with the SEC; that he had arranged for Blazar Token to be purchased by automatic payroll deduction; and that investors were guaranteed to receive extraordinary returns. Additionally, the SEC's complaint alleges that, in an earlier fraud scheme, beginning in late January 2021, DeSalvo fraudulently raised approximately $95,000 from 17 investors to participate in an investment program that DeSalvo claimed would invest in stocks, options, and crypto assets.

DeSalvo consented to the entry of a final judgment, subject to court approval, that would permanently enjoin him from violating Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933 and Section 10(b) of the Exchange Act of 1934 and Rule 10b-5 thereunder; impose a conduct-based injunction permanently enjoining him from participating in the issuance, offer, or sale of any security; and order him liable for disgorgement in the amount of $681,105, which shall be deemed satisfied by the order of restitution entered against him in a parallel criminal matter, United States v. DeSalvo, No. 24-cr-200-BRM (D.N.J.).

The SEC's litigation was handled by Christopher R. Kelly and supervised by Gregory R. Bockin of the SEC's Philadelphia Regional Office. The SEC's investigation was conducted by Brian Higgins and Brian Thomas of the Philadelphia Regional Office and David W. Snyder of the Division of Enforcement's Market Abuse Unit. The investigation was supervised by Assunta Vivolo, Scott A. Thompson, and Laura D'Allaird.