Stoltmann Law Offices, P.C., is a Chicago-based investor rights law firm offering services nationwide to victims of investment fraud on a contingency fee basis. Our attorneys are currently investigating allegations raised against National Realty Investment Advisors LLC, a New Jersey-based real estate investment company. On June 7, 2022, NRIA filed for protection under Chapter 11 of the US Bankruptcy Code, Case No. 22-14539, in the Bankruptcy Court for the District of New Jersey. The court filings indicate that NRIA raised money from investors through dozens of private placement investments over several years through dozens of subsidiary-LLCs. If you invested in one of these dozens of private placements, your investment is certainly at risk. If you were solicited by a financial advisor, investment advisor, accountant, or lawyer to invest in these private placements, you may have an actionable claim to recover your investment.
In 2021, an investigation was launched by the Securities and Exchange Commission, the Alabama Department of Securities, the New Jersey Securities Division, and the Illinois Securities Department into the working of NRIA and investor solicitations. A whistleblower also filed a report with the SEC alleging NRIA was running a massive Ponzi scheme. According to Barrons, the US Attorney’s office has also subpoenaed NRIA seeking testimony in front of a grand jury. This article also points out that NRIA has over 2,000 investors holding $540 million in securities issued by NRIA and its myriad subsidiaries. In February 2021, a former employee of NRIA, Tom Salzano of NRIA was arrested by the FBI for using fake documents to try and extract money from a NRIA investor. Mr. Salzano has not been convicted and is presumed innocent.
When financial advisors or other professionals recommend private placement investments like those offered by NRIA, they have duties and obligations to their clients to fully vet the deals before the recommend them. It is likely that sufficient red flags existed about NRIA, most notably some of the outlandish representations made in commercials including on YouTube about its promised rates of return, that any professional recommending this investment could be liable to the investor for losses.