- Nicholas Cosmo
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Nicholas Cosmo (born 1971) was arrested January 26, 2009 on charges of an estimated $370–413 million Ponzi scheme.[1] Cosmo is alleged to have conducted the scheme using his company Agape World Inc. in Hauppauge, New York, which claimed to make its profits via commercial bridge lending.[2] Authorities arrested him in Hicksville, New York.
Cosmo was arraigned in Islip, New York on January 27, 2009 on charges of mail fraud.[3][4] Cosmo had previously been convicted of felony fraud in 1999, and had served his sentence of 21 months in prison for the offense.[3]
On October 14, 2011, Cosmo was sentenced to 25 years in prison.[5]
Contents
Agape World
Prosecutors stated that Nick Cosmo used $212,000 in Agape funds to pay restitution from the 1999 federal mail fraud conviction. [6]
Prosecuters were only able to trace $10 million dollars of bridge loans that were made. $80 Million to $100 Million was allegedly lost in Commodities Future Trading and $55 to $63 Million of the investors funds went to pay the broker's commissions.[6][7]
The complaint against Agape World stated that many of the employees had criminal records.[8] Postal inspectors said Cosmo paid the brokers, some of whom were ex-convicts with records that included robbery and heroin importation, to recruit investors.[9]
One of the largest assets of Agape World was an indoor athletic complex purchased for $3.85 million dollars. The complex was sold via auction in June 2009 to a company called Coastal Sports. Cosmo had purchased the 38,000-square-foot (3,500 m2) building in Hauppauge, New York for $3.85 million last year and spent another $1 million to transform the former paintball arena into indoor athletic fields. [10]
The building was the most valuable asset in Cosmo’s holdings liquidated by bankruptcy trustee, Silverman Acampora, and was auctioned off by David R. Maltz & Co. of Plainview, New York.[11]
Cosmo Post Bail
As of June 2009, Cosmo was unable to post bail. Judge Hurley would not release Cosmo until several conditions were met; Cosmo's relatives agreed to back a $1.25 million bail package secured by their homes and financial accounts.[12][13]
Cosmo, chief executive of a private suburban New York investment firm indicted for a $400 million fraud, was freed from jail on Thursday after it took months for him to make bail.
A U.S. judge released Cosmo on $1.25 million bail secured by property and frozen bank accounts but ruled he would be confined to his home under electronic monitoring on New York's Long Island.
Judge Revokes Cosmo’s Bail
In October 2009, a federal judge found that Cosmo couldn't be trusted and ended his house arrest after less than three months and returned him to jail to await trial.
U.S. District Judge Denis R. Hurley, at a hearing in Central Islip, New York, ordered that Cosmo be jailed pending trial after prosecutors alleged he used a computer and tried to transfer assets in violation of his bail conditions and provided false statements to a U.S. Pretrial Services officer.[14]
Cosmo Pleads Guilty to $413 million Ponzi Scheme
Cosmo pleaded guilty to mail and wire fraud charges on Friday October 29, 2010, and faces up to 40 years in prison. On October 14, 2011, he was sentenced to 25 years in jail. "Those who lie and steal from the investing public are on notice that they face severe penalties," U.S. Attorney Loretta Lynch in Brooklyn said today in a statement. "As recounted today in court by several of his victims, the defendant's actions crushed the hopes and dreams of everyday citizens."[15] [16]
References
- ^ "Feds Say Cosmo Ponzi Scheme Hits Estimated $413 Million With Foreign Investors", Bloomberg News (April 16, 2009)
- ^ Agape World website
- ^ a b "Financier Arrested on Charges of $400 Million Ponzi Scheme" Reuters via Yahoo News (January 27, 2009)
- ^ "US Authorities Allege $380 Million Scheme", Bloomberg News via The Age (January 27, 2009)
- ^ "Mini-Madoff Gets 25 Years", Reuters via Yahoo News (October 15, 2011)
- ^ a b http://www.allbusiness.com/legal/criminal-law-bail/11768940-1.html
- ^ http://www.bloomberg.com/apps/news?pid=newsarchive&sid=ami2bpTpObY8
- ^ AllBusiness website entry
- ^ Bloomberg News
- ^ "Cosmos Field of Dreams Sold For 3.4M", Long Island Business News (June 4, 2009)
- ^ "Cosmos Field of Dreams Sold For 3.4M", Long Island Business News (June 4, 2009)
- ^ "Accused Ponzi Schemer Cosmo Denied Bail for Now" Newsday (June 23, 2009)
- ^ 'Accused NY Firm Manager Cosmo Freed on Bail', Reuters (July 23, 2009)
- ^ http://online.wsj.com/article/SB125512102113876805.html
- ^ "Mini-Madoff Gets 25 Years", Reuters via Yahoo News (October 15, 2011)
- ^ Bloomberg News via San Francisco Chronicle (October 15, 2011)
External links
- Website of Agape World's receiver
- Summary of Articles and Videos at New York Newsday (January 27, 2009)
- "Another Ponzi Scheme? Feds Arrest Money Manager Cosmo", Time (January 27, 2009)
- "Troubled Times Bring Mini-Madoffs to Light", The New York Times (January 28, 2009)
- "Cosmos Field of Dreams Sold For 3.4M", Long Island Business News (June 4, 2009)
- "Accused Ponzi Schemer Cosmo Denied Bail for Now" Newsday (June 23, 2009)
- "Judge Revokes Cosmos Bail", Wall Street Journal (October 9, 2009)
- "Cosmo Pleads Guilty" Business Week (November 1, 2010)
Categories:- 1971 births
- Living people
- American fraudsters
- American money managers
- Hedge fund managers
- American people convicted of fraud
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