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New York 'Mini-Madoff' Busted

Cops accuse New York financier of scamming investors out of millions

By Rob Quinn, Newser Staff

Posted Jan 27, 2009 6:09 AM CST

(Newser) – New York police have busted a financier accused of running a Ponzi scheme, Reuters reports. Nick Cosmo—sentenced to 21 months on swindling charges in 1999—may have bilked investors of up to $380 million through his firm Agape World, which claimed to make high-interest bridge loans, according to authorities. Police had to escort Cosmo from his Long Island office last week to protect him from a mob of violent investors.

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Long Island businessman Nick Cosmo is accused of scamming investors out of hundreds of millions of dollars in a Ponzi scheme. (Enterpreneur.com)

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Nick Cosmo surrenders to police on fraud charges. (jerseyspikes)

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Some of the early investors made money but as this scheme started to crumble, the later investors did not see a penny. - A law enforcement official

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New York 'Mini-Madoff' Busted