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Tuesday, January 27, 2009

NY Financier Nicholas Cosmo Arrested In Purported $400 Million Scam, Any Links to Sarasota's Art Nadel ?

NY Financier Nicholas Cosmo Arrested In Purported $400 Million Scam. Authorities on Monday arrested the CEO of a private New York financing firm on suspicion of running a Ponzi scheme that attracted $400 million in investments.

Nicholas Cosmo, head of Agape World Inc on New York's Long Island, was said to provide commercial bridge loans, but was instead operating a traditional Ponzi scheme in which early investors are paid with the money of new clients, officials said.

"Nicholas Cosmo (old 'glamor' photo of him above) took the advice of an attorney and complied with an arrest warrant," said Al Weissmann, spokesman for the U.S. Postal Inspection Service, which is investigating Agape World and Cosmo along with the FBI.Another law enforcement official, said agents had visited Cosmo's office on Monday expecting to arrest him, but he was not there.

He complied with the warrant on Monday night and was expected to appear in magistrate's court on Tuesday in Central Islip on Long Island, FBI and USPIS officials said. Mini-Madoff Making Recent Headlines, Long Island investor Nicholas Cosmo was charged Tuesday in a $370 million Ponzi scheme of his own.
He's alleged to have hired convicted criminals as brokers, blown millions of dollars in bad commodities trades and spent his victims' money on jewelry and limousines, officials said.
Agape World Inc, a private firm with its office in Hauppauge, New York was not registered with the U.S. Securities and Exchange Commission. "Some of the early investors made money but as this scheme started to crumble, the later investors did not see a penny," a law enforcement official said of the firm (Sounds just like Sarasota Art Nadels Scam).


In 1997, while working as a stockbroker at Continental Broker-Dealer Corp. in NY, Cosmo was accused of misappropriating funds, according to court records. Cosmo “inserted the name Cosmo and Associates to replace a public customer’s name,” on a transaction .

Nicholas Cosmo pleaded guilty to a single Federal charge in 1999 and was sentenced to serve 21 months in a Federal prison and pay at least $135,000 in restitution.

Nicholas Cosmo was also ordered to undergo “extensive gambling therapy” while in prison, according to court records.

NICHOLAS COSMO 49193-053 age 37-White-M 08-23-2000 RELEASED
Nicholas Cosmo set up his company Agape World Inc on 8/07/2000 (see NYS records), while he was still in Federal Prison, sure was in a big hurry to rip people off.
According to the firm's website www.agapeworldinc.net / it has made commercial bridge loans, construction loans, acquisition loans and financing for properties nationwide with capital obtained from private sources since 1999.

From New York State Division of Corporations Records;
Current Entity Name: AGAPE WORLD INC.
Initial DOS Filing Date: AUGUST 07, 2000
County: NASSAU
Jurisdiction: NEW YORK
Entity Type: DOMESTIC BUSINESS CORPORATION
Current Entity Status: ACTIVE
Address: SUITE 428 275 BROAD HOLLOW Rd MELVILLE, NEW YORK

Projects in New York, California, Texas and South Carolina are among those listed as recipients of Agape loans in the past two years.


INVESTORS RAISED CONCERNS;
Investors had been raising concerns about Agape long before the financial crisis unearthed the recent rash of Ponzi schemes, seeking advice and intelligence on Internet investment chat boards such as www.scamvictimsunited.com and www.fatwallet.com.

"Has anyone invested with Agape World Inc? They provide bridge loans and offer investors 13-14% returns? When my brother was telling me about it, it sounded kinda fishy and risky," reads a March 2, 2008 website posting.

"The pictures on their website would make you believe that they funded the San Francisco Bay Bridge, the Taipei 101 Tower, and the Tower of Babylon, and the Baghdad Railroad," reads another post.

Former Nasdaq stock market chairman Madoff was arrested December 11 and charged with securities fraud after authorities said he confessed to running "a giant Ponzi scheme" over many years.

Since then, authorities have announced charges in investigations of at least three other alleged Ponzi schemes -- in California, Georgia and Florida -- with amounts ranging from $25 million to hundreds of millions of dollars.

Any links to Sarasota's Art Nadel or the NYC Mob ?
Arthur Nadel, head of Florida-based Scoop Management, was reported missing by his family in early January. He left behind a suicide note. It expressed guilt for losing his clients' money and said someone might try to kill him. Art Nadel borrowed $50,000 from NYC Mob Loan sharks in 1978. Was Art Nadel a big time gambler like Nicholas Cosmo ? See one of my prior post on Art Nadel here, SEC charges Art Nadel with fraud in Sarasota, Art Nadel Links to a NYC Address, Howard P. Sturman and the NYC Mob


The U.S. Securities and Exchange Commission charged the money manager with fraud last Wednesday in a complaint, saying the six hedge funds Nadel oversaw, which he valued at more than $300 million, actually contain less than $1 million. It obtained an emergency court order freezing Nadel's assets and appointed a receiver.


Bill Warner
private investigator
WBI Inc private Detective Agency
Sarasota Fl
email wbi@comcast.net