National Realty Investment Advisors Investigated For $630M Fraud

New Jersey Accuses Real Estate Development Company of Defrauding 1,800 Investors

Shepherd Smith Edwards and Kantas (SSEK Law Firm at investorlawyers.com) is investigating claims of losses by 1,800 investors. These investors may have been fraudulently sold at least $630M in securities by National Realty Investment Advisors (NRIA) between 2018 and 2022. The New Jersey-based real estate development company filed for Chapter 11 bankruptcy protection on June 8, 2022.

An affidavit filed in US bankruptcy court notes about $600M in claims against approximately $300M of assets. On June 21, 2022, the New Jersey Bureau of Securities ordered NRIA to stop operations and accused the company of fraudulent investment sales. Investors were purportedly fraudulently sold units in the NRIA Fund. The minimum investment that investors could make was $100K.

Other entities named in the order include:

NRIA Partners Portfolio Fund I, LLC;
NRIA Capital Partners, Inc.;
NRIA Structured Credit Strategies, LLC.

National Realty Investment Advisors and its principals allegedly marketed the NRIA Fund as a “ billion-dollar-plus real estate development enterprise involving different kinds of residences and mixed-use rental development.” Investors were told that this was a chance to buy property or land at “below market value prices” that would then be developed and sold at a considerable profit.

The NRIA Fund Are Junk Bonds That Aren’t Suitable for Investors

NRIA Fund was marketed through a nationwide campaign nationally on the radio and locally on billboards that guaranteed 12% returns and up to 21% returns. Instead, NRIA allegedly invested a quarter of investors’ funds in commercial mortgage-backed securities (CMBS) that were junk bond grade.

Brokers did this to make these promised returns. These junk bonds were purportedly leveraged through repurchase agreements with financial firms, which increased certain risks that financial advisors never disclosed to investors.

The company’s principals are accused of:

Using investors’ money to fund yearly distributions;
Using straw buyers to generate nonexistent sales;
Inflating company performance.

The principals allegedly enriched themselves and family members through lavish payments using millions of dollars in investor funds.

National Realty Investment Advisors: Other Recent Key Events

Other key events that investors of National Realty Investment Advisors products, including the NRIA Fund, include:

March 2021: The Federal Bureau of Investigation (FBI) arrests NRIA portfolio manager Nick Solzano.
September 2021: The Philadelphia Inquirer reports that the real estate development company is under investigation by regulators in New Jersey, Illinois, and Alabama, as well as the FBI and the US Securities and Exchange Commission (SEC).
April 2022: Rey Grabato, NRIA’s CEO, resigned.

Skilled Securities Lawyers

Our team of securities lawyers can help you recoup losses from investing in National Realty Investment Advisors. SSEK Law Firm represents investors in New Jersey and throughout the United States in FINRA arbitration, litigation, and mediation. Call SSEK Law Firm at (800) 259-9010 today.