Business & Tech
Victims of Hauppauge Ponzi Scheme Awarded $4 Million
Business owner scams more than $400 million from working class investors.
A judge awarded $4.1 million to eight victims of a Hauppauge-based Ponzi scheme, according to a Newsday report.
Officials said the $400 million scheme operated out of two Hauppauge-based companies run by Nicholas Cosmo: Agape World and Agape Merchant Advance.
Agape World sought investors - primarily blue collar workers - to fund short-term loans to help companies get temporary financing with promise of huge returns. In actuality, Agape World was a classic Ponzi scheme in which brokers made money by selling investments to family and friends, many of whom lost live savings and fortunes.
Cosmo pleaded guilty to mail and wire fraud charges in 2010.
Cosmo is currently serving a 25-year prison term.
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