March 24, 2009: The Court signed consent orders of preliminary injunction against Defendants Nicholas Cosmo, Agape World, Inc. and Agape Merchant Advance, LLC. Pursuant to these orders, Defendants are prohibiting from violating the Commodity Exchange Act and engaging in any commodity interest transactions. In addition, an asset freeze was imposed and this litigation was stayed until the related criminal proceeding pending in the Eastern District of New York, U.S. v. Nicholas Cosmo, Docket # 09-M-0066 has been resolved by Final Judgment and Order by the District Court.
March 16, 2009: The court appearance originally scheduled for March 10, 2009 before the Honorable Judge Leonard D. Wexler is adjourned to March 24, 2009 at 11:00 am.
March 10, 2009: The court appearance scheduled for March 10, 2009 at 11:00am before the Honorable Judge Leonard D. Wexlar had been adjourned. Updated information will be posted on this website
March 3, 2009: This matter is adjourned to March 9, 2009 at 11:00 am before the Honorable Leonard D. Wexler. Judge Wexler presides on the ninth floor in Federal District Court, Eastern District of New York, located at 100 Federal Plaza, Central Islip, NY 11722.
January 27, 2009: CFTC Charges Nicholas Cosmo and Agape Companies with Defrauding Customers of Tens of Millions of Dollars in Commodity Futures Trading Scheme
The U.S. Commodity Futures Trading Commission (CFTC) today filed a federal law suit against Nicholas Cosmo of Lake Grove, New York, Agape World, Inc., (Agape World), and Agape Merchant Advance LLC (Agape Advance), both of Hauppauge, New York (collectively, defendants), charging them with defrauding customers of tens of millions of dollars.
In conjunction with the filing of the complaint today in the United States District Court for the Eastern District of New York, the CFTC is seeking a statutory restraining order freezing assets and preserving records.
In its enforcement action, the CFTC alleges that defendants solicited tens of millions of dollars from customers for the stated purpose of investing in bridge loans and merchant advances. Defendants then misappropriated a significant portion of those funds to engage in unauthorized commodity futures trading. Defendants’ unauthorized commodity futures trading resulted in tens of millions of dollars in losses, none of which were ever disclosed to investors.
Stephen J. Obie, Acting Director of the Division of Enforcement commented: “Defendants here swindled tens of millions of dollars from unsuspecting customers through phony profitability promises, while, in actuality, losing millions speculating in commodity futures trading. These schemes are so insidious because they undermine investors’ confidence to invest in legitimate enterprises. Investors must exercise caution with investments that sound too good to be true; by the time enforcement authorities get involved, swindled funds may be gone.”
Cosmo’s Criminal History Includes a Federal Conviction for Mail Fraud
In 1999, Cosmo, then a licensed stock broker and account executive, pleaded guilty to mail fraud after admitting to commingling funds, purposely misleading investors, and forging documents. Cosmo was sentenced to a 21-month prison term followed by three years of supervised release and payment of restitution.
The CFTC’s complaint seeks civil monetary penalties, disgorgement of ill-gotten gains, restitution to defrauded customers, and injunctive relief, among other sanctions.
The CFTC appreciates the assistance of the United States Attorney’s Office for the Eastern District of New York (EDNY), the United States Postal Inspection Service, the Federal Bureau of Investigation, and the Securities and Exchange Commission.
Related Documents:
- Complaint, January 27, 2009
- Statutory Restraining Order, January, 27, 2009
Please Send Us Information by
- Filling out our complaint form, or
- Call the Commission at 646-746-9823
Staff Contacts:
Phillip Rix
Investigator
CFTC, Division of Enforcement
140 Broadway - 19th Floor
New York, NY 10005
[email protected]
Judith Slowly
Investigator
CFTC, Division of Enforcement
140 Broadway - 19th Floor
New York, NY 10005
[email protected]
Last Updated: March 23, 2011