If you cant make it - write a letter to the judge at the address listed in the notification below.
Without victims, the judge will feel this is a lessor crime.
Internal Case Number: 2008R01592Court Docket Number: 09-CR-00255The sentencing hearing for defendant(s), NICHOLAS COSMO, has been set for October 14, 2011, 10:30 AM at U. S. District Court, EDNY, Long Island Courthouse, 100 Federal Plaza, Central Islip, NY 11722-4438 before Judge Denis Hurley. You are welcome to attend this proceeding; however, unless you have received a subpoena, your attendance is not required by the Court. If you plan on attending, please check with the VNS Call Center to verify the sentencing date and time. Should you wish to speak at the sentencing or want to check for the most current information on the date/time of this event please call our office a day or two before the scheduled hearing.A United States Probation Officer prepares a report for the Court and may contact you to discuss the impact the crime had on you financially, physically, and/or emotionally. If you are contacted, please make every effort to provide accurate and detailed information.
Reason for adjournment: The United States Probation Department recently disclosed the Pre-Sentence Investigation Report to the Court and the parties. The parties are required to review the report and file responses to the Probation Department and the Court if appropriate. Due to the complex nature of this case, the amount of loss involved, and the large number of victims, it had taken more time than anticipated to obtain all the necessary information to prepare a detailed and thorough report.
Reminder re: Victim impact - It is helpful for the Court to know the impact of crime on the victims. If you would like to submit a victim impact statement to the Court, please mail by September 26th to: The Honorable Denis R. Hurley, U.S. District Court-EDNY, 930 Federal Plaza, Central Islip, NY 11722. If you would like to speak at the sentencing, please include your request in the letter.
Wednesday, August 17, 2011
Wednesday, June 15, 2011
Tonight 10pm Fox News
A few months ago, a few of us were asked to participate in a fox news interview.
the subject matter was the US Trustee going after victims for "clawbacks".
So, One other victim and myself went to manhattan, combed our hair and said our peace.
If youre interested its on tonight 10pm fox news.
I assure you, its nothing more than my ranting. Actually, the other guy had some interesting things to say.
I wouldnt go out of my way to watch it there was anything better on tv.
But since i do have this blog, i though i might as well post it.
Dom
the subject matter was the US Trustee going after victims for "clawbacks".
So, One other victim and myself went to manhattan, combed our hair and said our peace.
If youre interested its on tonight 10pm fox news.
I assure you, its nothing more than my ranting. Actually, the other guy had some interesting things to say.
I wouldnt go out of my way to watch it there was anything better on tv.
But since i do have this blog, i though i might as well post it.
Dom
Friday, May 20, 2011
BOA beats the Rap...
What more can i say?
Judge "Spatt" - just did exactly that in our faces.
Read the dismissal for yourself. I'm just plain disgusted.
http://www.lehmanprincipalprotectednotes.com/images/Order%20Dismissing%20Second%20Amended%20Complaint%203-29-11.pdf
The dismissal basically says... "we didnt prove BOA knew there was fraud" even though they should have or did know that "cosmo was a convicted felon" with a history of fraud on his record and having been banned from trading.
Well friends, Now that BOA has bent us over, lets see how hard the US Bankruptcy Court can kick us.
Judge "Spatt" - just did exactly that in our faces.
Read the dismissal for yourself. I'm just plain disgusted.
http://www.lehmanprincipalprotectednotes.com/images/Order%20Dismissing%20Second%20Amended%20Complaint%203-29-11.pdf
The dismissal basically says... "we didnt prove BOA knew there was fraud" even though they should have or did know that "cosmo was a convicted felon" with a history of fraud on his record and having been banned from trading.
Well friends, Now that BOA has bent us over, lets see how hard the US Bankruptcy Court can kick us.
Sunday, May 1, 2011
bank ordered to pay $400k to victims of Ponzi scheme
maybe the4res hope for us if our Trustee follows suit:
http://www2.nbc17.com/news/2011/apr/29/asheboro-bank-ordered-pay-400k-victims-ponzi-schem-ar-991490/
Asheboro bank ordered to pay $400k to victims of Ponzi scheme
WASHINGTON --
An Asheboro-based bank has agreed to pay $400,000 toward restitution for victims of a Ponzi scheme, which operated through accounts maintained at the bank.
CommunityONE Bank is charged with failing to maintain an effective anti-money laundering program. As a result, the prosecution agreement recognizes thebank has committed to overhauling its anti-money laundering program.
“Banks asleep at the switch need to wake up,” U.S. Attorney Anne Tompkins said. “Federal law requires banks to implement a robust and proactive anti-money laundering program to detect fraud and protect the public from harm.”
The prosecution agreement also dictates that CommunityONE pay 16 percent of its value, or $400,000, to the victims of the Ponzi scheme.
“By agreeing to pay restitution to the victims of a customer’s investment fraud scheme, and to overhaul its anti-money laundering program, the bank has begun the process of righting its wrongs,” Assistant Attorney General Lanny Breuer said. “We will take every necessary step to hold banks committing similar offenses to account.”
The $40 million Ponzi scheme was operated by CommunityONE Bank customer Keith Franklin Simmons for two and a half years almost entirely through an account at the bank.
From April 2007 until September 2009, Simmons deposited more than $35 million in investor funds into one account with the bank and withdrew over the same time span more than $35 million from the same account.
The bank’s records also showed that Simmons diverted more than $2 million to other accounts with the bankthat he controlled to operate his other businesses; diverted nearly $800,000 in cash withdrawals, gift cards and transfers to his personal account with the bank; and diverted numerous payments to support his luxurious lifestyle including payments for private jets, vehicles and gifts.
Under the Bank Secrecy Act, banks are required to establish, implement and maintain programs designed to detect and report suspicious activity indicative of money laundering and other financial crimes.
“The Bank Secrecy Act was enacted to protect the public from harm by identifying and detecting money laundering from criminal enterprises, terrorism, tax evasion or other unlawful activities,” Jeannine Hammett,special agent in charge for Internal Revenue Service Criminal Investigation, explained.
http://www2.nbc17.com/news/2011/apr/29/asheboro-bank-ordered-pay-400k-victims-ponzi-schem-ar-991490/
Asheboro bank ordered to pay $400k to victims of Ponzi scheme
WASHINGTON --
An Asheboro-based bank has agreed to pay $400,000 toward restitution for victims of a Ponzi scheme, which operated through accounts maintained at the bank.
CommunityONE Bank is charged with failing to maintain an effective anti-money laundering program. As a result, the prosecution agreement recognizes thebank has committed to overhauling its anti-money laundering program.
“Banks asleep at the switch need to wake up,” U.S. Attorney Anne Tompkins said. “Federal law requires banks to implement a robust and proactive anti-money laundering program to detect fraud and protect the public from harm.”
The prosecution agreement also dictates that CommunityONE pay 16 percent of its value, or $400,000, to the victims of the Ponzi scheme.
“By agreeing to pay restitution to the victims of a customer’s investment fraud scheme, and to overhaul its anti-money laundering program, the bank has begun the process of righting its wrongs,” Assistant Attorney General Lanny Breuer said. “We will take every necessary step to hold banks committing similar offenses to account.”
The $40 million Ponzi scheme was operated by CommunityONE Bank customer Keith Franklin Simmons for two and a half years almost entirely through an account at the bank.
From April 2007 until September 2009, Simmons deposited more than $35 million in investor funds into one account with the bank and withdrew over the same time span more than $35 million from the same account.
The bank’s records also showed that Simmons diverted more than $2 million to other accounts with the bankthat he controlled to operate his other businesses; diverted nearly $800,000 in cash withdrawals, gift cards and transfers to his personal account with the bank; and diverted numerous payments to support his luxurious lifestyle including payments for private jets, vehicles and gifts.
Under the Bank Secrecy Act, banks are required to establish, implement and maintain programs designed to detect and report suspicious activity indicative of money laundering and other financial crimes.
“The Bank Secrecy Act was enacted to protect the public from harm by identifying and detecting money laundering from criminal enterprises, terrorism, tax evasion or other unlawful activities,” Jeannine Hammett,special agent in charge for Internal Revenue Service Criminal Investigation, explained.
Saturday, April 30, 2011
Silverman ! Pay attention...
Asheboro bank ordered to pay $400k to victims of Ponzi scheme
» 0 Comments | Post a Comment
WASHINGTON --
An Asheboro-based bank has agreed to pay $400,000 toward restitution for victims of a Ponzi scheme, which operated through accounts maintained at the bank.
CommunityONE Bank is charged with failing to maintain an effective anti-money laundering program. As a result, the prosecution agreement recognizes the bank has committed to overhauling its anti-money laundering program.
“Banks asleep at the switch need to wake up,” U.S. Attorney Anne Tompkins said. “Federal law requires banks to implement a robust and proactive anti-money laundering program to detect fraud and protect the public from harm.”
The prosecution agreement also dictates that CommunityONE pay 16 percent of its value, or $400,000, to the victims of the Ponzi scheme.
“By agreeing to pay restitution to the victims of a customer’s investment fraud scheme, and to overhaul its anti-money laundering program, the bank has begun the process of righting its wrongs,” Assistant Attorney General Lanny Breuer said. “We will take every necessary step to hold banks committing similar offenses to account.”
The $40 million Ponzi scheme was operated by CommunityONE Bank customer Keith Franklin Simmonsfor two and a half years almost entirely through an account at the bank.
From April 2007 until September 2009, Simmons deposited more than $35 million in investor funds into one account with the bank and withdrew over the same time span more than $35 million from the same account.
The bank’s records also showed that Simmons diverted more than $2 million to other accounts with thebank that he controlled to operate his other businesses; diverted nearly $800,000 in cash withdrawals, gift cards and transfers to his personal account with the bank; and diverted numerous payments to support his luxurious lifestyle including payments for private jets, vehicles and gifts.
Under the Bank Secrecy Act, banks are required to establish, implement and maintain programs designed to detect and report suspicious activity indicative of money laundering and other financial crimes.
“The Bank Secrecy Act was enacted to protect the public from harm by identifying and detecting money laundering from criminal enterprises, terrorism, tax evasion or other unlawful activities,” Jeannine Hammett,special agent in charge for Internal Revenue Service Criminal Investigation, explained.
Thursday, February 17, 2011
Sentencing "May 20th 2011"
The sentencing hearing for defendant(s), NICHOLAS COSMO, has been set for May 20, 2011, 10:30 AM at U. S. District Court, EDNY, Long Island Courthouse, 100 Federal Plaza, Central Islip, NY 11722-4438 before Judge Denis Hurley
Tuesday, February 1, 2011
60 days later...
been a while since we posted any comments. i guess the gist of things falls into the "no news is good news" catagory. i dont know of anyone involved thats had a judgement placed on his or her houses. and or bank accounts frozen. i guess thats good.
meanwhile, the trustee is suing everyone he can except for the real criminals and we the victims are on the dirty end of the stick once again and still.
i wish he would follow (madoffs trustee) picards example and go after the banks and commodaties brokers that propped cosmo up and gave him a clear line of fire when he was taking aim at our financial futures.
three things i'd like to make clear in this posting,
1. i give mad credit to the egyptions. they stand up as one voice and fight for what they believe is right - i wish we the victims had the same courage, strength and willingness to step out of our comfort zone to be heard.
2. i'd be happy to see cosmo get off easy, if i were offered the opportunity to be made whole again.
3. im sure im just spitting in the wind. my voice like my opinion means nothing to any of this at the end of the day.
6000 victims, and not a whisper from the masses.
what a shame.
meanwhile, the trustee is suing everyone he can except for the real criminals and we the victims are on the dirty end of the stick once again and still.
i wish he would follow (madoffs trustee) picards example and go after the banks and commodaties brokers that propped cosmo up and gave him a clear line of fire when he was taking aim at our financial futures.
three things i'd like to make clear in this posting,
1. i give mad credit to the egyptions. they stand up as one voice and fight for what they believe is right - i wish we the victims had the same courage, strength and willingness to step out of our comfort zone to be heard.
2. i'd be happy to see cosmo get off easy, if i were offered the opportunity to be made whole again.
3. im sure im just spitting in the wind. my voice like my opinion means nothing to any of this at the end of the day.
6000 victims, and not a whisper from the masses.
what a shame.
Monday, December 6, 2010
Been a long time since last posting
Im trying like everyone else to get past this mess. Every now and then, i think of something i'd like to say.
So today, i say, lets hope our Trustee follows the example of Irving Picard - madoff trustee and goes after Bank of America.
It may be our only saving grace.
So today, i say, lets hope our Trustee follows the example of Irving Picard - madoff trustee and goes after Bank of America.
It may be our only saving grace.
Friday, September 17, 2010
UPDATE - SEE COURT DATES
Cosmo, 39, is still cooling his heels in the Nassau County jail in East Meadow where he’s been held since his arrest for fraud on Jan. 26, 2009. A status conference on the case is scheduled for Sept. 24 in Central Islip and a trial date has been set for January 2011.
Another Agape employee, Richard Barry, 44, pleaded guilty to conspiracy to commit mail fraud last month and could face at least 10 years in prison. Barry, currently free on $200,000 bond, is the only other person besides Cosmo to be charged in the alleged Agape World scam. He is scheduled to be sentenced on Feb. 25, 2011.
VICTIMS SHOULD BE THERE TO SHOW SUPPORT TO THE PROSECUTORS
Another Agape employee, Richard Barry, 44, pleaded guilty to conspiracy to commit mail fraud last month and could face at least 10 years in prison. Barry, currently free on $200,000 bond, is the only other person besides Cosmo to be charged in the alleged Agape World scam. He is scheduled to be sentenced on Feb. 25, 2011.
VICTIMS SHOULD BE THERE TO SHOW SUPPORT TO THE PROSECUTORS
Monday, September 13, 2010
90 Day Rule
It seems if you were smart enough to ask for a check in the 90 days prior to Agapes Involuntary Bankruptcy - ... youve been or will be asked to... give it back.
Yes Sir. You could have lost tens or hundreds of thousands of dollars over the past 5 years to Agape, but if youve taken any money back in the last 90 days... the trustee feels it should come back to the pool.
Personally, I think this is ridiculous.
1. Investors might have actually gained over the past 5 years (taken more than they invested) and they arent asked to give it back???
2. In these difficult economic times, you want victims to be victimized again (this time by the court and trustees office).
I dont know, maybe its just me. I guess if no one complains, then you must all be happy with the decision.
I quit writing to the blog months ago because I releaized it made no difference.
People lost money. People resigned themselves to fate.
I wonder if they'll continue to take it laying down.
Yes Sir. You could have lost tens or hundreds of thousands of dollars over the past 5 years to Agape, but if youve taken any money back in the last 90 days... the trustee feels it should come back to the pool.
Personally, I think this is ridiculous.
1. Investors might have actually gained over the past 5 years (taken more than they invested) and they arent asked to give it back???
2. In these difficult economic times, you want victims to be victimized again (this time by the court and trustees office).
I dont know, maybe its just me. I guess if no one complains, then you must all be happy with the decision.
I quit writing to the blog months ago because I releaized it made no difference.
People lost money. People resigned themselves to fate.
I wonder if they'll continue to take it laying down.
Friday, May 21, 2010
Trial date for Cosmo
A federal judge set a tentative trial date Thursday for Nicholas Cosmo, who is accused of operating a $413-million Ponzi scheme through his former Hauppauge-based Agape World and Agape Merchant Advance businesses.
U.S. District Judge Denis Hurley issued a trial date of Jan. 10, 2011. Cosmo, of Lake Grove, faces 10 counts of mail fraud and 22 counts of wire fraud in the scheme, which prosecutors said duped 1,500 investors. He has pleaded not guilty.
In a related development, federal prosecutors filed an arrest warrant Thursday for one of Cosmo's closest associates, Richard Barry, charging him with conspiracy to commit mail fraud.
Barry, of Seaford, held various titles at the Agape companies when the alleged Ponzi scheme occurred, including vice president and office manager, according to the arrest warrant filed by federal prosecutor Demetri Jones.
In Cosmo's case, Jones told Hurley at U.S. federal court in Central Islip that the government and Cosmo's attorneys were attempting to negotiate a plea deal.
If Cosmo goes to trial and is convicted, he theoretically would face life in prison under federal sentencing guidelines because of the sum involved in the alleged scheme.
Cosmo's attorney, Richard Levitt, declined to comment Thursday, as did Jones.
The arrest warrant for Barry accuses him of knowingly participating in several frauds which formed the central part of the alleged Ponzi scheme, Jones said, including falsely promising investors high rates of returns for funding short-term bridge loans to real estate developers.
According to the warrant, Barry knew that many of the loans would not be issued and that it was mathematically impossible to pay the rates of returns, up to 60 percent to 72 percent, that investors were promised.
Barry's attorneys have agreed to have him surrender Friday on the mail-fraud conspiracy charge in court in Central Islip, according to officials.
No time has been set yet for a hearing in the case.
Attorneys for Barry could not be reached for comment.
U.S. District Judge Denis Hurley issued a trial date of Jan. 10, 2011. Cosmo, of Lake Grove, faces 10 counts of mail fraud and 22 counts of wire fraud in the scheme, which prosecutors said duped 1,500 investors. He has pleaded not guilty.
In a related development, federal prosecutors filed an arrest warrant Thursday for one of Cosmo's closest associates, Richard Barry, charging him with conspiracy to commit mail fraud.
Barry, of Seaford, held various titles at the Agape companies when the alleged Ponzi scheme occurred, including vice president and office manager, according to the arrest warrant filed by federal prosecutor Demetri Jones.
In Cosmo's case, Jones told Hurley at U.S. federal court in Central Islip that the government and Cosmo's attorneys were attempting to negotiate a plea deal.
If Cosmo goes to trial and is convicted, he theoretically would face life in prison under federal sentencing guidelines because of the sum involved in the alleged scheme.
Cosmo's attorney, Richard Levitt, declined to comment Thursday, as did Jones.
The arrest warrant for Barry accuses him of knowingly participating in several frauds which formed the central part of the alleged Ponzi scheme, Jones said, including falsely promising investors high rates of returns for funding short-term bridge loans to real estate developers.
According to the warrant, Barry knew that many of the loans would not be issued and that it was mathematically impossible to pay the rates of returns, up to 60 percent to 72 percent, that investors were promised.
Barry's attorneys have agreed to have him surrender Friday on the mail-fraud conspiracy charge in court in Central Islip, according to officials.
No time has been set yet for a hearing in the case.
Attorneys for Barry could not be reached for comment.
Cosmo associate surrenders in mail fraud case
An associate of alleged swindler Nicholas Cosmo surrendered Friday to federal agents on a charge of conspiracy to commit mail fraud as part of Cosmo's alleged $413-million Ponzi scheme.
Richard Barry of Seaford, who at one time was vice president and office manager of Cosmo's Hauppauge-based Agape companies, appeared before U.S. Magistrate Kathleen Tomlinson at the federal court in Central Islip. He was not required to enter a plea.
Tomlinson released him on $200,000 bail, pending future hearings. As a condition of bail, Barry was ordered to surrender his passport and is forbidden to travel outside the Eastern District - which includes Long Island, Brooklyn, Queens and Staten Island - and also Manhattan, which is in the Southern District, without the permission of the court.
Barry declined to comment Friday, as did his attorney, Lisa Annibale. Federal prosecutor Demetri Jones also declined to comment.
On Thursday, U.S. District Judge Denis Hurley tentatively set Jan. 10 for the start of Cosmo's trial on charges of mail and wire fraud.
Richard Barry of Seaford, who at one time was vice president and office manager of Cosmo's Hauppauge-based Agape companies, appeared before U.S. Magistrate Kathleen Tomlinson at the federal court in Central Islip. He was not required to enter a plea.
Tomlinson released him on $200,000 bail, pending future hearings. As a condition of bail, Barry was ordered to surrender his passport and is forbidden to travel outside the Eastern District - which includes Long Island, Brooklyn, Queens and Staten Island - and also Manhattan, which is in the Southern District, without the permission of the court.
Barry declined to comment Friday, as did his attorney, Lisa Annibale. Federal prosecutor Demetri Jones also declined to comment.
On Thursday, U.S. District Judge Denis Hurley tentatively set Jan. 10 for the start of Cosmo's trial on charges of mail and wire fraud.
Thursday, May 20, 2010
Judge sets trial date for Cosmo in Ponzi scheme case
Judge sets tenative date for january 2011.
the saga continues.
the saga continues.
Friday, May 14, 2010
Thursday, April 1, 2010
2.7 BILLION, NOT 400 Million as thought
A new ammended complaint filed 3/31/2010 outlines how 2.7 BILLION DOLLARS moved into and out of Agape World Inc in the period from 2006-2009, with almost 300 million in one month alone.
This new information comes from "court ordered subpoena" of the "TRUSTEES" Records.
Look for more information to follow as I review the ammended complaint.
This new information comes from "court ordered subpoena" of the "TRUSTEES" Records.
Look for more information to follow as I review the ammended complaint.
Friday, March 5, 2010
JOIN THE MADOFF VICTIMS AT THE NEXT MEETING
I'd like to recommend we join the madoff victims at the next meeting. there's much to learn and good people to meet.
go to http://www.investoraction.org
check the schedule online... i have registered and will attending.
go to http://www.investoraction.org
check the schedule online... i have registered and will attending.
Tuesday, February 9, 2010
Thank you Judge "Spatt".
BOA lawsuit dismissed....
One of the last and best hopes for victims of Nicholas Cosmo’s alleged Ponzi scheme to recover their lost millions has fizzled in court.
Judge Arthur Spatt dismissed three lawsuits filed against Bank of America and two commodities brokerages that claimed the companies aided Cosmo in ripping off more than 5,000 investors in his Hauppauge-based investment firm, Agape World. In the decision handed down on Jan. 29, the judge ruled the plaintiffs hadn’t proved that the bank and the trading firms had knowledge of the alleged $400 million fraud and shouldn’t be held liable.
Attorneys for the victims argued that the bank and the trading firms failed to adequately vet Cosmo, who was barred for life from associating with anyone in the securities business as a result of his first conviction for fraud in 1998. The feds say Cosmo lost nearly $100 million in online futures trading with about a half-dozen brokerages in the last couple of years. The bank was the conduit for the millions paid to the stock traders that was supposed to go to bridge-loan borrowers, according to Agape’s business model.
But Cosmo only made loans for less than $25 million of the $400 million he took in from investors. The feds say he blew through the rest and paid at least $55 million to about a dozen Agape sales reps.
Agape World took in so much money between 2006 and 2008 that Bank of America employees were stationed there to facilitate the transfers of millions between customers. Agape investors have told LIBN that a woman who identified herself as a bank employee called them and recommended Agape as a good investment. She even suggested that investors take out home equity loans from her bank and put it into Cosmo’s company, where they would get interest rates as high as 14 percent in just six weeks.
The dismissal of the three lawsuits doesn’t bode well for similar suits that are still pending against the bank and stock trading firms. And with little Agape assets left to recover, victims were hoping the courts would hold the bank responsible, because they feel it acted irresponsibly with their accounts.
Agape victim Dom DiColandrea said the judge’s dismissal sets a new precedent for “corporate criminals” to avoid prosecution or penalty when failing to warn the public of any danger or suspicious activity.
“I think it’s a sad statement about our system of justice when a United States district court judge rules in favor of corporate willful deception over the unsuspecting consumer,” DiColandrea said. “The honorable Judge Spatt has done exactly that. He spat in the face of every innocent victim with this unfathomable ruling.”
Spatt left open the possibility of revisiting the claim against the bank, but only if further evidence is found that it helped carry out the alleged fraud or that Bank of America breached its fiduciary duty to its customers.
Spatt was on the bench for the prosecution of Cosmo’s first fraud, where about 10 victims lost about $170,000 to the then 26-year-old stock broker. Cosmo had put their money into his own Charles Schwab account and sent his clients phony statements to cover up the thefts. The judge sentenced him to 21 months in the Allenwood Federal Corrections facility and ordered Cosmo to undergo extensive gambling therapy. The swindler founded Agape World upon his release in August 2000.
Arrested on Jan. 26, 2009, Cosmo is currently being held at the Nassau County jail in East Meadow. His next court appearance is scheduled for March 26. If convicted this time, prosecutors say Cosmo faces up to 30 years in prison.
--
David Winzelberg
Reporter
Long Island Business News
631-913-4247
david.winzelberg@libn.com
http://www.libn.com/spacedout
One of the last and best hopes for victims of Nicholas Cosmo’s alleged Ponzi scheme to recover their lost millions has fizzled in court.
Judge Arthur Spatt dismissed three lawsuits filed against Bank of America and two commodities brokerages that claimed the companies aided Cosmo in ripping off more than 5,000 investors in his Hauppauge-based investment firm, Agape World. In the decision handed down on Jan. 29, the judge ruled the plaintiffs hadn’t proved that the bank and the trading firms had knowledge of the alleged $400 million fraud and shouldn’t be held liable.
Attorneys for the victims argued that the bank and the trading firms failed to adequately vet Cosmo, who was barred for life from associating with anyone in the securities business as a result of his first conviction for fraud in 1998. The feds say Cosmo lost nearly $100 million in online futures trading with about a half-dozen brokerages in the last couple of years. The bank was the conduit for the millions paid to the stock traders that was supposed to go to bridge-loan borrowers, according to Agape’s business model.
But Cosmo only made loans for less than $25 million of the $400 million he took in from investors. The feds say he blew through the rest and paid at least $55 million to about a dozen Agape sales reps.
Agape World took in so much money between 2006 and 2008 that Bank of America employees were stationed there to facilitate the transfers of millions between customers. Agape investors have told LIBN that a woman who identified herself as a bank employee called them and recommended Agape as a good investment. She even suggested that investors take out home equity loans from her bank and put it into Cosmo’s company, where they would get interest rates as high as 14 percent in just six weeks.
The dismissal of the three lawsuits doesn’t bode well for similar suits that are still pending against the bank and stock trading firms. And with little Agape assets left to recover, victims were hoping the courts would hold the bank responsible, because they feel it acted irresponsibly with their accounts.
Agape victim Dom DiColandrea said the judge’s dismissal sets a new precedent for “corporate criminals” to avoid prosecution or penalty when failing to warn the public of any danger or suspicious activity.
“I think it’s a sad statement about our system of justice when a United States district court judge rules in favor of corporate willful deception over the unsuspecting consumer,” DiColandrea said. “The honorable Judge Spatt has done exactly that. He spat in the face of every innocent victim with this unfathomable ruling.”
Spatt left open the possibility of revisiting the claim against the bank, but only if further evidence is found that it helped carry out the alleged fraud or that Bank of America breached its fiduciary duty to its customers.
Spatt was on the bench for the prosecution of Cosmo’s first fraud, where about 10 victims lost about $170,000 to the then 26-year-old stock broker. Cosmo had put their money into his own Charles Schwab account and sent his clients phony statements to cover up the thefts. The judge sentenced him to 21 months in the Allenwood Federal Corrections facility and ordered Cosmo to undergo extensive gambling therapy. The swindler founded Agape World upon his release in August 2000.
Arrested on Jan. 26, 2009, Cosmo is currently being held at the Nassau County jail in East Meadow. His next court appearance is scheduled for March 26. If convicted this time, prosecutors say Cosmo faces up to 30 years in prison.
--
David Winzelberg
Reporter
Long Island Business News
631-913-4247
david.winzelberg@libn.com
http://www.libn.com/spacedout
Sunday, January 17, 2010
update...
Nearly a year after his arrest for running an alleged Ponzi-scheme, Nicholas Cosmo has a new attorney because he doesn’t have any money to pay the old one.
Bronx attorney Stacey Richman asked to be relieved from the case in federal court Friday and Judge Denis Hurley handed it over to Manhattan lawyer Richard Levitt, of Levitt & Kaizer, who will be paid for his services through the government’s Criminal Justice Act.
“I understand that Mr. Cosmo’s financial situation is relatively dire,” Hurley said before approving the move.
The judge also approved a $2,800 payment for the electronic version of case records for Cosmo and his new attorney to review. He set the next court date for Jan. 29 at 10 a.m.
Saturday, December 12, 2009
David needs our help... lets do what we can. Please.
Reporter David Winzelberg is looking to speak to investors/victims for information for a book he's writing on Agape. No names will be used.
Email him at david.winzelberg@libn.com or call him at 917-796-1801
Friday, December 11, 2009
NO MORE EXCUSES... EVERYONE OF YOU SHOULD PARTICIPATE
NO MORE EXCUSES !
I OFFER YOU HERE AN OPPORTUNITY TO BE HEARD.
A CHANCE TO BE ASSERTIVE, TO TAKE ACTION, TO FIGHT BACK, WITHOUT HAVING TO TAKE OFF FROM WORK, FLY TO NY, STAND IN THE COLD, OR WAVE A BIG SIGN THAT SAYS "I GOT RIPPED OFF".
THIS PARTICIPATION YOU CAN ACCOMPLISH AT YOUR OWN PACE, ON YOUR OWN SCHEDULE, ANONYMOUSLY AND WITH ALMOST NO COST (PENNIES FOR THE PHOTOCOPIES).
NO MORE EXCUSES.
I CHALLENGE THE GROUP TO DESIGN (OR ASK FOR A COPY OF ONE OF MINE), PRINT AND DISTRIBUTE AS MANY FLYERS AS YOU CAN AT ANY BANK OF AMERICA" INDOOR ATM FACILITY.
THE THEME OF THE "FLYER" SHOULD BE BOA'S HISTORY OF INVOLVEMENT IN ANY "ONE OR MORE" OF THE DOZENS OF MISDEEDS AGAINST THE PUBLIC INTEREST INCLUDING BUT NOT LIMITED TO THE "AGAPE WORLD INC" PONZI.
THE KEY TO A SUCCESSFUL CAMPAIGN OF PUBLIC AWARENESS IS CONSISTENCY (KEEP THE FLYERS FLOWING) AND TIMING (WE NEED TO DO THIS ON WEEKENDS OR EVENINGS (WHEN THE BANK STAFF WONT BE AROUND TO REMOVE AND TRASH THEM).
OUR OBJECTIVE... EDUCATE THE BOA ACCOUNT HOLDERS AS TO BOA'S ALLEGED INVOLVEMENT
IN THE AGAPE WORLD INC PONZI AND OTHER CRIMINAL ACTIVITIES.
IF YOU DO THIS, PLEASE ENCOURAGE THE OTHER GROUP MEMBERS TO DO THE SAME BY SIGNING ONTO THE YAHOO GROUP SITE AND LETTING US KNOW HOW MANY YOU DROPPED OFF AND IN WHAT CITY (DO NOT MENTION THE BRANCH BY NAME).
I WISH YOU ALL SUCCESS.
check out this video of one young womans courage to speak out against BOA:
http://consumerist.com/2009/11/ex-bank-of-america-employee-tells-all-in-youtube-video.html
I OFFER YOU HERE AN OPPORTUNITY TO BE HEARD.
A CHANCE TO BE ASSERTIVE, TO TAKE ACTION, TO FIGHT BACK, WITHOUT HAVING TO TAKE OFF FROM WORK, FLY TO NY, STAND IN THE COLD, OR WAVE A BIG SIGN THAT SAYS "I GOT RIPPED OFF".
THIS PARTICIPATION YOU CAN ACCOMPLISH AT YOUR OWN PACE, ON YOUR OWN SCHEDULE, ANONYMOUSLY AND WITH ALMOST NO COST (PENNIES FOR THE PHOTOCOPIES).
NO MORE EXCUSES.
I CHALLENGE THE GROUP TO DESIGN (OR ASK FOR A COPY OF ONE OF MINE), PRINT AND DISTRIBUTE AS MANY FLYERS AS YOU CAN AT ANY BANK OF AMERICA" INDOOR ATM FACILITY.
THE THEME OF THE "FLYER" SHOULD BE BOA'S HISTORY OF INVOLVEMENT IN ANY "ONE OR MORE" OF THE DOZENS OF MISDEEDS AGAINST THE PUBLIC INTEREST INCLUDING BUT NOT LIMITED TO THE "AGAPE WORLD INC" PONZI.
THE KEY TO A SUCCESSFUL CAMPAIGN OF PUBLIC AWARENESS IS CONSISTENCY (KEEP THE FLYERS FLOWING) AND TIMING (WE NEED TO DO THIS ON WEEKENDS OR EVENINGS (WHEN THE BANK STAFF WONT BE AROUND TO REMOVE AND TRASH THEM).
OUR OBJECTIVE... EDUCATE THE BOA ACCOUNT HOLDERS AS TO BOA'S ALLEGED INVOLVEMENT
IN THE AGAPE WORLD INC PONZI AND OTHER CRIMINAL ACTIVITIES.
IF YOU DO THIS, PLEASE ENCOURAGE THE OTHER GROUP MEMBERS TO DO THE SAME BY SIGNING ONTO THE YAHOO GROUP SITE AND LETTING US KNOW HOW MANY YOU DROPPED OFF AND IN WHAT CITY (DO NOT MENTION THE BRANCH BY NAME).
I WISH YOU ALL SUCCESS.
check out this video of one young womans courage to speak out against BOA:
http://consumerist.com/2009/11/ex-bank-of-america-employee-tells-all-in-youtube-video.html
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Our Strength and Unity
Our Strength and Unity
