Investors are seeking to force a Long Island firm into bankruptcy protection after its owner was accused in a $370 million Ponzi scheme.
If successful, the move could allow them to recover some of their investments collected by the firm, Hauppauge based Agape World Inc.
A hearing on the request filed in U.S. Bankruptcy Court in Central Islip is scheduled for Thursday. Five investors are named in the court documents.
Agape owner Nicholas Cosmo is accused of scamming dozens of investors and spending much of their money on risky trades. He was arrested last month on a federal fraud charge and remains in jail.
Cosmo's attorney, Stacey Richmond, said he is seeking a lawyer for the bankruptcy court claim. He had no other comment.
Copyright AP - Associated Press
