Thursday, January 29, 2009

Another New York Area Ponzi Scheme Investigated

Nicholas Cosmo, 37, and the owner of Agape World Inc. and Agape Merchant Advance LLC, based on Long Island, New York, was arrested Monday night on charges that he ran a $380 million Ponzi-type investment fraud scheme. According to prosecutors, Cosmo offered returns of 48 to 80 percent on "high yield private bridge loans." Specifically, Cosmo was charged with mail fraud. His 1,500 or so victims were mostly middle class investors who, in some cases, lost their life savings. According to reports, Cosmo had gambling debts he owed to the Genovese organized crime family. We note that Cosmo had previously been convicted and spent time in jail for securities fraud.

Read the story here, here and here.

Read the DOJ's announcement here.

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