Nicholas Cosmo Arrested, Charged with Mail Fraud as Feds Invesitgate Another Possible Ponzi Scheme on Long Island

Photo: Entrepreneur Magazine, Nicholas Cosmo

More drama. Another Ponzi scheme in coming to light. Nicholas Cosmo, president and CEO of Agape World Inc., in Hauppauge, Long Island, has been accused of bilking investors through a scheme that has been running for quite a long time. The scumbag surrendered to authorities tonight and has been charged with mail fraud. Hah. Another one bites the dust! Angry investors descended on the office earlier on Monday demanding information on their accounts, which are most likely nonexistent now. Cosmo was able to attract $400 million in investments from unsuspecting investors, maybe a few greedy ones as well.

According to 1010 Wins, on Friday, Cosmo told more than 150 investors that all payouts are suspended because real-estate deals the firm backed are facing foreclosure. Suffolk County police were called to the building after the investors refused to leave the offices. Agape said it specializes in short-term loans to builders, paying a high interest rate to those who invest. It also seems to specialize in robbing people blind. If these allegations are true, we will see more people literally losing the shirts off their backs. I am glad they caught him before he tried to kill himself or stage his death.

1010 Wins WEB EXTRA: Letter from Cosmo to Investors

While the amount in question here pales in comparison to the $50 billion Ponzi scheme allegedly spearheaded by Bernard Madoff, the amounts are large enough to attract investigation from the big guns -- FBI, U.S. Postal Inspectors and local law enforcement. Yeah, there will be more Ponzi schemes uncovered as the financial industry declines. It seems that Mr. Cosmo is not a stranger to the correction system. He was convicted of a federal charge of felony fraud and swindle in 1999 and sentenced to 21 months in prison. According to the U.S. Bureau of Prisons, he was released in August 2000. But he backslid and committed an even bigger crime. I am all for second chances, but this scumbag needs to be behind bars for a long time.