Two associates of a convicted felon Nicholas Cosmo were arrested by the FBI Tuesday on charges related to his $400
million Ponzi scheme.
According to a report in Newsday, Bryan Arias, a sub broker for Cosmo and Cosmo’s former executive assistant, Shamika Luciano are facing 21 separate counts including conspiracy to commit wire and mail fraud, and committing securities fraud.
Cosmo, of Lake Grove and the former head of Hauppauge-based Agape World, was sentenced to 25 years in prison and to pay $175 million in restitution after admitting to taking more than $400 million from his investors in a Ponzi scheme in Oct. 2011.
Cosmo, under Agape World, used to solicit investors - primarily blue-collar workers - to fund short loans to help companies get temporary financing. He promised 80 percent returns, but admittedly used the investors' money for personal use.
A judge awarded $4.1 million to eight victims of a Hauppauge-based Ponzi scheme last April.