Ponzi Once, Ponzi Twice
A New Jersey man got probation for running a $300 million scam. Then he launched a $658 million fraud with ads on Fox News
“If at first you don't succeed, destroy all evidence that you tried.” ― Steven Wright
A New Jersey scam artist received a 12-year prison sentence on Tuesday for running his second Ponzi scheme – a $658 million fraud that leveraged ads on Fox News and an endorsement from Bill O’Reilly.
Thomas Nicholas Salzano, 66, head of National Realty Investment Advisors, spent his ill-gotten gains on “erectile dysfunction medications, expensive dinners, extravagant birthday parties,” and hefty payments to his wife, ex-wife and girlfriend, according to a federal indictment.
Ads featuring O’Reilly, who was dismissed from the Fox in 2017 following complaints of sexual harassment, promised a 10% monthly return.
There was no such pop. Instead, thousands of investors lost millions of dollars because Salzano’s purported real estate investment firm was a bound to peter out.
NRIA wasn’t his first love
In 2001, Salzano and his brother co-founded NorVergence, which sold a magic box they claimed would slash telephone and Internet bills. Investors, who lost more than $300 million, filed lawsuits calling the company a Ponzi scheme.
For his part, Salzano got three years probation and struck a $50 million settlement with the Federal Trade Commission – which was suspended because he didn’t have the money.
It was apparently just another bump on the road to Ponzi riches. In 2006, Salzano launched NRIA, a Ponzi more than twice the size of NorVergence.
He blanketed the nation with investor presentations, billboards, radio ads and commercials on Fox News, including shows hosted by Tucker Carlson and Sean Hannity. The marketing targeted entrepreneurial immigrants, aspirational conservatives and low-information investors.
You have to admit, it takes balls to launch a national advertising campaign for a second massive Ponzi scheme – or maybe just load of Viagra.
Keep reading with a 7-day free trial
Subscribe to Business Blunders to keep reading this post and get 7 days of free access to the full post archives.