Sun, Oct 4, 2015
Welcome Guest
Free Trial RSS
Get FREE trial access to our award winning publications
Alternative Market Briefing

Nicholas Cosmo ordered to pay $240m in fines in latest ruling on 2009 Ponzi scheme

Friday, October 26, 2012

Bailey McCann, Opalesque New York: Nicholas Cosmo, formerly of Lake Grove, N.Y., is faced with a default judgment in the U.S. District Court for the Eastern District of New York after he was charged by the U.S. Commodity Futures Trading Commission (CFTC) of defrauding investors of tens of millions of dollars in a commodity futures trading scheme. Cosmo, known as Long Island's Bernie Madoff, was originally arrested in 2009 for a $370–413 million Ponzi scheme involving his former company Agape World.

Cases have been moving forward against Cosmo since 2009 on Agape World, who was sentenced to 25 years in prison in 2011. Prosecutors were initially only able to locate $10m of investor funds in bridge loans that were made and as much as $100m was believed to have been lost in commodities trading. Another $50-60m of investor funds went to paying brokers commissions. Cosmo originally represented to investors that he was making bridge loans and merchant advances and instead used the money to make unauthorized commodities future trades and pay for his lifestyle.

The first indicators of Cosmo's criminal activities, however, showed up earlier. In 1999, Cosmo, then a licensed stock broker and account executive, pleaded guilty to mail fraud after admitting to commingling funds, purposely misleading investors, and forging documents. Cosmo was sentenc......................

To view our full article Click here

Today's Exclusives Today's Other Voices More Exclusives
Previous Opalesque Exclusives                                  
More Other Voices
Previous Other Voices                                               
Access Alternative Market Briefing

  • Top Forwarded
  • Top Tracked
  • Top Searched
  1. Opalesque Exclusive: IRAs represent billions of untapped capital for hedge funds[more]

    Benedicte Gravrand, Opalesque Geneva: Retirement accounts might not be the first source that comes to mind for those looking to raise funds, but they may represent billions of untapped capital. Unlike traditional retirement accounts,

  2. Opalesque TV: One way to access market hedge funds in the EU under the AIFMD radar[more]

    Benedicte Gravrand, Opalesque Geneva: While the Cayman Islands, the US and Hong Kong await the pan-European marketing passport to be extended to alternative investment fund

  3. Performance - Hedge fund moguls Einhorn, Loeb, Rosenstein lose money in September, Risky strategy sinks small hedge fund[more]

    Hedge fund moguls Einhorn, Loeb, Rosenstein lose money in September From Billionaire stock pickers David Einhorn, Daniel Loeb and Barry Rosenstein on Wednesday told their wealthy investors they lost money in September as market turmoil inflicted more pain on some of America'

  4. Comment - Cash and hedge funds are king[more]

    From For years we've argued that, given heightened uncertainty, a preferred portfolio posture is to barbell between cash allocations, which provide valuation optionality and mitigate unanticipated shocks, and long-short equities hedge funds that reduce "beta", or index risks, while leaving

  5. Europe - Russia has been gold for hedge funds this year[more]

    From Judging by the headlines, Russia may look like a nation in turmoil. Investors, though, don't seem to mind. In fact, for hedge funds, Russia has been one of the biggest and best stories of 2015, turning in the only positive performance among all emerging market strategies and crushing