NY adviser indicted in $413 million Ponzi scheme
CENTRAL ISLIP, N.Y. — An investment firm owner masterminded a $413 million Ponzi scheme that fleeced more than 6,000 people, a federal indictment charged.
Nicholas Cosmo, 37, of Lake Grove, ran the scheme from 2003 until his arrest in January through his two companies, Agape World and Agape Merchant Advance, according to the 32-count indictment issued Thursday.
The companies claimed they could make short-term loans called bridge loans to help companies get temporary financing, the indictment said. The investors were promised up to an 80 percent return, but the companies issued a return rate of less than 10 percent, according to the indictment and prosecutors.
The two companies, based in Hauppauge and Queens, issued just $30 million in loans while taking in a total of $413 million, the indictment said.
“Cosmo knew … the loans extended by (the two companies) could not possibly provide … investors with the promised returns,” the indictment said.
Cosmo was charged with 22 counts of mail fraud and 10 counts of wire fraud. He faces up to 20 years in prison on each count if convicted.
His attorney, Stacey Richman, said Cosmo planned to plead not guilty to the charges at an arraignment scheduled for Wednesday. Cosmo was arrested January and has remained in jail; a judge ruled a $750,000 bail package offered by Cosmo’s defense team was inadequate.
Information from: Newsday, www.newsday.com
Related News
Judge considers revoking bail for NY businessman accused of orchestrating $413M Ponzi schemeOctober 8th, 2009 Judge reconsiders bail for NY man accused of fraudCENTRAL ISLIP, N.Y. — A federal judge is considering a request by prosecutors to revoke bail for a New York businessman accused of orchestrating a $413 million Ponzi scheme.
SEC sues Mich. man accused of raising millions in fraudulent scheme involved 1,200 investorsSeptember 30th, 2009 SEC sues Mich. man linked to alleged Ponzi schemeDETROIT — Federal regulators are suing a Detroit-area man who is accused of soliciting millions for the leader of a $250 million financial scam.
NY prosecutors suspect adoption Ponzi scheme that promised babies but didn't deliverSeptember 30th, 2009 NY prosecutors suspect 'adoption Ponzi scheme'GARDEN CITY, N.Y. — New York prosecutors are investigating a possible "adoption Ponzi scheme" in which clients were defrauded out of fees for babies who didn't exist.
Feds: 2 men charged in New York with $80 million ATM Ponzi schemeSeptember 21st, 2009 2 men charged in NY with $80 million Ponzi schemeNEW YORK — Two men are charged in New York with an $80 million Ponzi scheme involving an automated teller machine business, federal authorities said Monday. Vance Moore II, 55, of Raleigh, N.C., was arrested Friday in Garner, N.C., and was scheduled for an initial court appearance Monday in the Eastern District of North Carolina.
Apologetic ex-Madoff CFO DiPascali reveals details of Ponzi scheme as he pleads guilty in NYCAugust 11th, 2009 Ex-Madoff CFO pleads guilty in court in NYCNEW YORK — The former chief financial officer for Bernard Madoff has pleaded guilty in a cooperation deal to 10 charges, including conspiracy. Frank DiPascali entered the pleas Tuesday in federal court in Manhattan.
SEC accuses Lancelot Investment of investing more than $2 billion in alleged Ponzi schemeJuly 11th, 2009 Lancelot Investment accused of aiding Ponzi schemeCHICAGO — Lancelot Investment Management and its owner have been accused by the U.S. Securities and Exchange Commission of aiding a multibillion dollar Ponzi scheme.
SEC freezes assets of Dallas company accused of oil and gas-themed Ponzi schemeJuly 7th, 2009 SEC freezes assets of Dallas companyDALLAS — Federal regulators have frozen the assets of a company accused of running a $485 million Ponzi scheme centered on the oil and gas industry. In a statement issued Tuesday, the Securities and Exchange Commission says the scheme was orchestrated by three Dallas businessmen through a company called Provident Royalties LLC.
Industry group sets aside $231M for claims by Madoff investorsJuly 1st, 2009 Group says $231M set aside for Madoff claimsNEW YORK — A group funded by the securities industry has set aside $231 million to cover claims by Bernard Madoff's burned investors. The announcement was made Wednesday by court appointed trustee Irving H.
Indicted Texas billionaire R. Allen Stanford pleads not guilty to fraud chargesJune 25th, 2009 Billionaire Stanford pleads not guilty to fraudHOUSTON — Texas billionaire R. Allen Stanford has pleaded not guilty to charges he swindled investors out of $7 billion as part of a massive investment scam.
AP source: Indicted billionaire R. Allen Stanford en route to Texas on fraud chargesJune 22nd, 2009 AP source: Indicted billionaire headed to TexasWASHINGTON — A law enforcement official says indicted billionaire R. Allen Stanford is en route to Texas to face charges that he ran a $7 billion swindle.
Federal indictment accuses billionaire R. Allen Stanford of running a vast Ponzi schemeJune 19th, 2009 Stanford indicted for alleged Ponzi schemeWASHINGTON — Texas billionaire R. Allen Stanford, whose sprawling banking empire collapsed this year, has been indicted for what prosecutors say is a $7 billion scheme to defraud investors.
Feds charge 2 Calif. men of running $85 million Ponzi scheme targeting Korean-AmericansJune 10th, 2009 Feds accuse 2 Calif. men of conducting $85M schemeSAN FRANCISCO — Federal regulators have accused two Northern California men of conducting an $85 million Ponzi scheme that targeted Korean-Americans, pledging to deliver spectacular returns from foreign currency trading.
Western NY businessman pleads guilty in Ponzi scheme that bilked millions from CatholicsJune 8th, 2009 NY businessman pleads guilty in Ponzi schemeBUFFALO, N.Y. — A western NY businessman is facing up to a 25-year prison sentence and a $50 million fine after admitting he orchestrated a multimillion dollar Ponzi scheme that targeted Catholics.
Madoff case trustee says claims in massive Ponzi scheme rise to almost 9,000May 14th, 2009 Trustee: Nearly 9,000 claims in Madoff scamNEW YORK — The trustee overseeing the liquidation of Bernard Madoff's assets says he's received almost 9,000 claims from the disgraced financier's victims. Court-appointed trustee Irving Picard told reporters Thursday on a conference call that he's identified about $1 billion in assets that will be used to pay the claims.
Suspect in killings of 8 people in Illinois, Missouri, indicted in jail attackMay 13th, 2009 Suspect in 8 deaths indicted in Ill. jail fightGALESBURG, Ill.
Loading ...