Thursday, March 5, 2009

Did Cosmo have an "ownership interest in ProMAC"?

Agape lender told to open files to bankruptcy trustee
A Hauppauge commercial lender once touted as the "exclusive" partner of Agape Merchant Advance - which authorities say was part of a Ponzi scheme - was ordered by a federal judge Wednesday to open its files to a bankruptcy trustee, court records show.

The lender, Professional Merchant Advance Capital Llc, or ProMAC, once listed itself as being run out of 150 Motor Pkwy., in the same suite as Agape Merchant Advance and Agape World - two companies owned by Nicholas Cosmo, accused by federal authorities of using the firms to run a $370-million Ponzi scheme involving about 1,500 investors.

Kenneth Silverman, the Jericho attorney appointed to oversee the Chapter 7 bankruptcy of Agape World, told Newsday yesterday he wanted to know if Cosmo had an "ownership interest in ProMAC" and whether Cosmo made "loans to ProMAC in support of its business platform."

U.S. Bankruptcy Judge Dorothy Eisenberg, sitting in Central Islip, yesterday granted Silverman's request.
see full story below:

Eisenberg's order came amid other Agape developments:

Silverman said Wednesday foreclosure proceedings have begun against a Louisiana company, United Steel Supply Inc., that defaulted on a $1.4-million loan from Agape World. The company did not respond to a phone message.
(doms note; This is interesting since we were all told that this bridge loan closed successfully)

Agape World officially went into Chapter 7 bankruptcy yesterday, and a meeting at which Silverman and creditors may question Cosmo or other Agape principals was scheduled for March 30 at 9:30 a.m. at the U.S. Bankruptcy Court. Silverman said Cosmo may not attend because of the federal criminal proceeding.
(doms note; we need to know if we can attend)

Three U.S. senators, including Charles Schumer (D-N.Y.), called for Senate hearings on changing laws to make it easier for Ponzi victims to recover their losses.
(doms note; write to your senator and endorse the effort).

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