CENTRAL ISLIP, N.Y. (CN) - After being sentenced to prison for federal mail fraud, Nicholas Cosmo defrauded other investors of tens of millions of dollars more by claiming he would invest it in bridge loans and merchant advances, but losing it trading commodities futures, the U.S. Commodity Futures Trading Commission claims in Federal Court. The CFTC sued Cosmo, of Hauppauge, and his companies Agape Merchant Advance and Agape World.
The CFTC says Cosmo concealed the losses and the trading from investors. He allegedly ran the game from January 2004 through December 2008. "Cosmo has never been registered with the CCTC in any capacity," and was sentenced to 21 months in prison for mail fraud in 1999 and ordered to pay restitution of $1.8 million the complaint states. The National Association of Securities Dealers revoked his license in 2000 and fined him $68,200, the CFTC says.
In this case, the Commission says Cosmo took "tens of millions of dollars from dozens of investors," and his unauthorized trading "resulted in millions of dollars in losses."