LAKE GROVE, N.Y. – Nicholas Cosmo, formerly of Lake Grove, New York, was already serving a 25-year prison sentence when the U.S. Commodity Futures Trading Commission (CFTC) secured a federal court order on February 28, 2013, further solidifying penalties related to a multi-million dollar fraud scheme. The CFTC charged Cosmo and his companies, Agape World, Inc., and Agape Merchant Advance LLC (collectively, the Agape Entities), with defrauding investors through a commodity futures trading scheme.
The Consent Order, entered by Judge Leonard D. Wexler of the U.S. District Court for the Eastern District of New York, permanently bans the Agape Entities from trading and registering, effectively barring them from any future involvement in commodity-related activities. The CFTC initially brought charges in 2009, alleging that Cosmo and his companies solicited tens of millions of dollars from investors under the guise of funding bridge loans and merchant advances.
However, the CFTC’s complaint detailed that a significant portion of these funds were diverted into unauthorized commodity trading, resulting in substantial losses that were deliberately concealed from investors. Cosmo’s actions constitute a clear case of fraud, exploiting investor trust for personal gain.
This latest order builds upon a Default Judgment entered against Cosmo on October 1, 2012, which imposed a staggering $240 million civil monetary penalty, in addition to trading and registration bans. He was also ordered to pay over $179 million in restitution to the investors he defrauded. Furthermore, a December 11, 2010, forfeiture order required Cosmo to surrender approximately $409.3 million in ill-gotten gains.
The Agape Entities are currently navigating Chapter 7 bankruptcy proceedings in the U.S. Bankruptcy Court for the Eastern District of New York. The CFTC provided notice of the Consent Order to all interested parties in the bankruptcy case, and no objections were raised. The CFTC worked in conjunction with the U.S. Attorney’s Office for the Eastern District of New York, the Federal Bureau of Investigation, the U.S. Postal Inspection Office, and the U.S. Securities and Exchange Commission on the case.
Source: CFTC.gov
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