U.S. Said to Seek Cosmo in $380 Million Ponzi Scheme

[Robbien]

Source: Bloomberg

Jan. 26 (Bloomberg) -- U.S. authorities are searching for a New York businessman after failing to arrest him in connection with an alleged $380 million Ponzi scheme, a person familiar with the case said.

Agents with the U.S. Postal Inspectors Service and Federal Bureau of Investigation are seeking Nicholas Cosmo, founder of Agape World Inc. in Hauppauge, New York, said the person, who wasn’t authorized to speak about the case. They unsuccessfully sought to arrest Cosmo earlier today at his office and executed a search warrant of the premises and could be seen carrying out boxes of documents from the office.

. . .

Agape World “works with you and your potential project to help raise assets to meet approval for traditional lending at a later date,” according to the firm’s Web site, which shows images of skyscrapers under construction and building sites. “We arrange Equity Participations, Joint Ventures, Acquisition Loans, Bridge Loans, Construction Loans.”

. . .

In an October interview with Bloomberg at his Hauppauge office, Cosmo insisted he wasn’t operating a Ponzi scheme after being asked about his prior federal conviction.

Cosmo said he arranges the loans, which are then funded by his investors. He says sample investors include FBI agents, New York State Police officers, hedge funds and retirement plans.

“How could we not be legit,” he said.



Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=aYQNrlqJxr18&refer=home

---

Another ponzi, only this one actually run by a proven crook who previously sat in the penitentiary for two years for being a swindler.

[Ian David]

1. Agape sounds like a chrisTian fundie organization. n/t

[Robbien]

7. Angry victims stormed the offices of Agape and one of them socked owner Nick Cosmo

upside his head Friday.

The blow sent Cosmo to one knee. Officers from the Suffolk County police were summoned to provide him an escort out of the building and to his home in Lake Grove.

In recent days brokers have questioned Cosmo on the legitimacy of the business.

Victims of the alleged scam milled around the lobby of 150 Motor Parkway waiting to confront the man they say took them for millions. Before they escorted Cosmo to his car, police warned them not to interfere.

The man who punched Cosmo said he lost $285,000 in the alleged pyramid. Police did not detain him.

http://libn.com/libizblog/2009/01/23/pyramid-victim-packed-a-punch/


Ha!

[Caretha]

11. Now that story

is what I call a "feel good" story. Who the hell wouldn't want to smack some rigtousness right upside some of these fuckin' snake oil salesmen's heads.

[acmavm]

2. Another Ponzi? Aren't they all? And there's more to come no doubt.

[Robbien]

3. You want more? Just found another one which sold ponzis to the clergy

Donald Griffin was in his Florida vacation home on Jan. 14 when his twin brother called.
“He said, ‘Don, you’re not going to believe this,” Griffin said.

The Penfield resident’s sibling — a priest in the Buffalo Diocese — told him the shocking news: Richard S. Piccoli, owner and president of the Williamsville, Erie County, investment firm Gen-See Capital Corp., had been arrested by federal authorities. That news could presage the loss of hundreds of thousands of dollars that Griffin, a retired economics teacher, and his four siblings invested in Gen-See.

According to documents filed by the U.S. Securities and Exchange Commission, Gen-See billed itself as a firm that invested in “high quality” home mortgages that consistently yielded returns for investors of around 7 or 8 percent. Federal prosecutors allege that instead of putting his clients’ money into mortgages, Piccoli used it to pay returns to those who’d previously invested.

. . .

Gen-See advertised heavily in western New York Roman Catholic publications and through word-of-mouth, drawing what appears to be a large number of clergy and others in as clients.

Griffin said his brother invested in the firm, followed by the other four siblings and their now-deceased mother. When Madoff was arrested, Gen-See’s clients received a letter from Piccoli.

“We don’t operate that way. We’re an honest organization,” the letter said, according to Griffin. Griffin received regular returns on his investment and Piccoli’s other clients dispelled any unease he felt about investing with Gen-See.

“I said, ‘No, there can’t be a problem because all these priests are invested in it,” Griffin said. “This guy’s been in business 33 years, (and) somebody would’ve discovered something by now.”

http://www.mpnnow.com/news/x403278516/Penfield-A-shock-from-afar


If I haven't lost count, I believe the count is now up to about nine of these big-time scam artists.

[acmavm]

4. I'm beginning to think there must be thousands of these things out there.

But hey, this guy was a piker. He said he only invested in 'high quality' mortgages but he only paid 7 or 8 per cent. At least Bernie Maddof was paying 12% until the crash.

[Robbien]

6. There was an article a couple of days ago

where a guy did an analysis of all the hedge funds and found that there were a total of 27 large hedge funds which had all the markings of ponzis.

And that is only the registered hedges. Hedges don't have to register, they are supposed to be self-regulating.

[Ian David]

8. Self-regulating... that's funny. n/t

[Xipe Totec]

5. Cosmo who?

[indepat]

9. Are not social security and much of Wall Street just big ponzi schemes?

:P

[Robbien]

10. Since Social Security runs a surplus which is often

used to plug up the Federal Budget

it doesn't even come close to qualifying for a Ponzi.


Wall Street is not a Ponzi. It is a Las Vegas gambling casino on steroids.

[indepat]

12. Like that moniker better

:P