Mon, Nov 30, 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. Other Voices: Hedge fund marketing and the selling cycle[more]

    By Bruce Frumerman. How long is the selling cycle now? That’s a question my financial communications and sales marketing consulting firm has been asked on a regular basis by hedge fund firm owners and sales people, ever since we opened the doors to our firm in 1987 pre-crash. Wa

  2. People - Solus Alternative Asset Management adds chief strategist from BTIG[more]

    From Daniel Greenhaus joined hedge fund manager Solus Alternative Asset Management as managing director and chief strategist. He will work closely with Chris Bondy, Solus’ chief economist, managing director and executive vice president, said Chris Pucillo, CEO and chief investmen

  3. Opalesque Roundtable: Seeding deal terms can be onerous for hedge funds[more]

    Benedicte Gravrand, Opalesque Geneva for New Managers: Executives from fund of funds firms, family offices, a placement agent, a private equity firm, and an accounting firm gathered in Connecticut last month for the

  4. Opalesque Roundtable: Family offices flock to co-investment[more]

    Bailey McCann, Opalesque New York: Co-investments have been a hot topic for pension funds in recent years, as they try to move away from high fees and improve transparency. But now, family offices are more readily getting into the mix and establishing in-house deal teams, according to the delega

  5. More institutional investors invest in CTAs compared to last year despite dissatisfaction with performance[more]

    Benedicte Gravrand, Opalesque Geneva: "Despite a strong start to 2015 for CTAs in Q1, commodity market conditions have made return generation difficult for fund managers over much of the rest of the year to date," says Preqin’s November