‘Mini Madoff’ Gets 25 Years

Oct 17 2011 | 9:21am ET

Ponzi schemer Nicholas Cosmo, known in the press as the “mini Madoff” has been sentenced to 25 years in prison.

The owner of Agape World and Agape Merchant Advance was arrested in January 2009 and pled guilty to a scheme under which he’d raised $413 million to make short-term bridge loans but in fact lent only $30 million. Actual victim losses totaled about $195 million. Cosmo ran the scheme from October 2003 to January 2009.

“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.”

A former Agape World vice president and underwriter, Richard Barry, pled guilty in August 2010 to participating in the scheme and will be sentenced on November 2.


In Depth

Q&A: Schroders’ Forest Discusses Multi-Asset Investments On Eve Of U.S. Launch

Jul 17 2014 | 8:05am ET

Global investment manager Schroders has $446 billion in assets under management, $...

Lifestyle

Einhorns Busts At WSOP, Finishes In 173rd

Jul 15 2014 | 10:48am ET

Greenlight Capital founder David Einhorn’s World Series of Poker won’t end at...

Guest Contributor

Common Risk Parity Misperceptions

Jul 16 2014 | 11:02am ET

Over the past few years, risk parity has become a component of most investors’...

 

Sponsored Content

    Northern Trust Helps Hedge Funds Navigate Derivatives Regulations

    Jul 8 2014 | 10:48am ET

    The surge in derivatives regulation is among the most complex challenges facing the financial services industry today. Northern Trust’s Joshua Satten recently spoke with FINalternatives to share insights into the challenges presented by new regulation and explore how the industry is responding. Read more…

Publisher's Note