LI man accused of running Ponzi scheme due in court

(AP) - The owner of a New York investmentfirm accused of running a $370 million Ponzi scheme was scheduledfor court Thursday. A judge will consider whether Nicholas Cosmo gets bail beforetrial. Cosmo

News 12 Staff

Jan 29, 2009, 2:19 PM

Updated 5,653 days ago

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(AP) - The owner of a New York investmentfirm accused of running a $370 million Ponzi scheme was scheduledfor court Thursday. A judge will consider whether Nicholas Cosmo gets bail beforetrial. Cosmo was arrested Monday and charged with mail fraud. He wasordered held until the bail hearing at his first court appearanceTuesday. Prosecutors say tens of millions of dollars from about 1,500investors of Cosmo's Agape World Inc. and Agape Merchant Advancecannot be accounted for. Of the $370 million, $55 million was paid to brokers, and about$80 million was lost by Cosmo in commodities futures tradingaccounts. Early investors in the scheme received payouts but theaccounting remains murky. Prosecutors say Cosmo's firm had only $746,000 in the bank lastweek.


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