A Long Island mini-Madoff accused of ripping off $370 million from more than 1,000 investors, is expected to plead guilty, according to court papers filed in the federal court in Central Islip.
Nicholas Cosmo is accused of running the Ponzi scheme so he could live a life of luxury. He allegedly used investors money to take vacations, ride in fancy cars and limousines, and even sponsor community Little League fields in Seaford. His alleged victims included working class families from across Long Island as well as U.S. soldiers serving in Iraq and Afghanistan.
Cosmo was the founder of the investment firm Agape World and he allegedly lost tens of millions of dollars risking investors money in commodity futures - even though he had claimed he was investing in stocks. Some investors claim Cosmo had guaranteed them double-digit returns.
Cosmo's arrest in Hicksville came just weeks after Bernie Madoff's massive $60 billion dollar fraud.
Legal papers filed in federal court state the 'guilty plea set for October 29, 2010 at 1:30 pm.' The Court also told prosecutors to notify victims about the planned hearing. The Court said a certain number of victims will be allowed to address the court during the hearing.
Jonathan Dienst WNBC
