New York Ponzi Scheme Operator Gets 25-Year Federal Prison Sentence

The U.S. District Court for the Eastern District of New York Oct. 14 handed down a 25-year prison sentence to a man who allegedly operated a Ponzi scheme that caused investors to lose $195 million (United States v. Cosmo, E.D.N.Y., 09-2255).

Prosecutors alleged that Nicholas Cosmo, former head of Agape World Inc. and Agape Merchant Advance LLC, lured clients to invest more than $400 million over five years in purported short-term loans with promises of high returns.

Instead, Cosmo allegedly paid earlier customers with newly obtained investments and lost more than $100 million through unauthorized futures and commodities ...