Nicholas Cosmo Receives 25 Years in Prison for $413 Million Ponzi Scheme

[alp227]

Source: Bloomberg.com

Nicholas Cosmo, who pleaded guilty to running a $413 million Ponzi scheme that defrauded thousands of investors, was sentenced to 25 years in prison, prosecutors said.

Cosmo, owner of Agape World Inc. and Agape Merchant Advance LLC, was arrested in January 2009. He claimed Agape solicited investor funds that were used to make short-term bridge loans. Agape received about $413 million from investors, while only about $30 million in loans were made, according to the government. Actual losses to victims were about $195 million.

“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.”

Cosmo, who was sentenced by U.S. District Judge Denis Hurley in Central Islip, New York, operated the scheme from October 2003 to January 2009. He solicited funds from investors “well in excess” of what he told them was needed for bridge loans, prosecutors said, and then pocketed the money.

Read more: http://www.bloomberg.com/news/2011-10-14/cosmo-gets-25-year-sentence-for-scheme.html

[TheWraith]

1. More good news. nt

[Dover]

10. Peanuts. So many BIG fish to fry but apparently no appetite...n/t

[TheWraith]

11. Can you specify who and for what crimes?

It seems like everybody forgets that out big complaints are about the shit that's legal, not the shit that's illegal.

[The Backlash Cometh]

2. We're up to two now!

That Occupy WallStreet thing is working!

[oNobodyo]

5. I'm not exactly disagreeing but...

the effect of these prosecutions coming out now has more to do with how long the courts take than OWS.

There have actually been a bunch of them since 09 but they usually get little attention and when they do they're buried again as "see they get prosecuted when they steal from the banks but nt us"...the logic of that statement eludes me but there it is.

[malthaussen]

3. I'm Really Quite Astonished

Most soi-disant "white collar criminals" have historically been awarded trivial sentences in minimum-security prisons. Well, well, we'll see what happens on appeal.

-- Mal

[BR_Parkway]

9. But he defrauded through the church...not quite as bad as stealing from

the banksters, but close in our society

[nichomachus]

4. Wall Street hates people like this

Just like the other casinos hate card counters and cheats. They screw things up for the one percenters. These convictions mean nothing -- just red herrings to make the gullible believe that things are changing. And they're falling for it.

[Scruffy1]

7. He stole from the rich so he goes to prison.

Steal from the poor and your corporation might pay a small fine if there is enough stink raised.

[Historic NY]

6. Another one falls.

[ooglymoogly]

8. Let the fall guys fall; they didn't fit in anyway...

the real crimes of the century, involving trillions, and the robbing of the national treasury will go unpunished and un-investigated.

[sarcasmo]

12. Greed in jail not Weed.