Nicholas Cosmo (born 1971) is an American former businessman whose name became synonymous with one of the largest and most damaging Ponzi schemes in modern U.S. history, a sprawling criminal enterprise that ultimately defrauded investors of an estimated $370 million to $413 million and secured his position among the worst white-collar offenders of the twenty-first century. Cosmo, who had already served a federal sentence for felony fraud in 1999, re-entered the financial world with an air of renewed legitimacy but quickly reverted to the deceptive practices that marked his earlier downfall. Operating through Agape World Inc., a financial firm headquartered in Hauppauge, New York, Cosmo marketed the company as a high-yield commercial bridge-lending operation, promising investors safe, short-term loans with unusually attractive returns. In reality, prosecutors later revealed that Agape World was a classic Ponzi scheme that used new investor money to pay earlier investors while Cosmo siphoned vast sums into personal spending, commodities-futures trading, and exorbitant broker commissions. Authorities arrested him on January 26, 2009, in Hicksville, New York, marking the abrupt collapse of an empire built on manipulation, deception, and the exploitation of financial trust. Cosmo was arraigned the following day in Islip, New York, on charges of mail fraud, and his arrest immediately prompted comparisons to other notorious fraudsters due to the staggering scale of his crimes. His earlier conviction for federal mail fraud—resulting in a 21-month prison sentence—was still fresh in the collective memory of law enforcement, and prosecutors noted that in a particularly brazen move, Cosmo had used more than $212,000 of Agape client funds to pay restitution owed from his 1999 conviction, demonstrating a long-standing pattern of financial abuse and disregard for ethical boundaries.

Cosmo’s scheme functioned through a carefully crafted illusion of stability and professionalism. Agape World Inc. purported to specialize in commercial bridge loans, a legitimate type of short-term financing often used by companies awaiting longer-term funding. Clients believed their money was being invested in safe, asset-backed transactions that would produce steady profits. However, prosecutors later determined that only a tiny fraction of client funds—approximately $10 million—was ever actually placed into bridge loans. Instead, Cosmo diverted between $80 million and $100 million into high-risk commodity-futures trading, which generated massive losses, while another $55 million to $63 million was paid out to brokers and salespeople as commissions. Many of these brokers were individuals with criminal backgrounds, including histories of robbery and heroin trafficking, and postal inspectors noted that Cosmo deliberately hired ex-convicts to solicit investors, exploiting their desperation and willingness to bend or ignore ethical rules in exchange for sizable commissions. The New York investment community was stunned when the details emerged, revealing that a company marketed as a suburban financial success story was actually employing individuals with extensive criminal histories to perpetuate fraud on a massive scale. The complaint filed against Agape World noted that the firm’s internal environment was plagued by dishonesty, misconduct, and aggressive recruitment tactics designed to lure in unsuspecting investors with promises of large returns backed by allegedly secure assets.

On October 29, 2010, Cosmo pleaded guilty to charges of mail and wire fraud in connection with the $413 million Ponzi scheme. Federal prosecutors emphasized the extraordinary scope of the fraud, noting that Cosmo’s actions had devastated thousands of investors, many of whom were ordinary individuals seeking stable financial returns. In total, more than 5,000 victims were identified, with losses so significant that some media outlets reported Cosmo’s scheme as the eighth-largest financial fraud in recorded history, tracing back to early eighteenth-century scams run by the infamous Scottish economist John Law. During the plea proceedings, U.S. Attorney Loretta Lynch delivered a strong condemnation of Cosmo’s actions, stating that those who lie to and steal from the investing public must face severe consequences. Several victims spoke in court, describing how Cosmo’s deception had destroyed their financial security, wiped out life savings, and shattered their hopes for retirement or financial stability. These emotional testimonies underscored the real-world consequences of white-collar crime, which can devastate entire families and communities.

 

On October 14, 2011, Cosmo was sentenced to 25 years in federal prison—a severe but fitting punishment given the enormity of the fraud. Judge Hurley emphasized Cosmo’s continued pattern of deception, manipulation, and disregard for the law. The sentencing marked a major milestone in the broader investigation surrounding Agape World, but prosecutors noted that Cosmo had not acted alone. On April 25, 2012, a criminal complaint was unsealed charging four former account representatives of Agape World Inc. and Agape Merchant Advance (AMA)—Jason Keryc, Anthony Massaro, Anthony Ciccone, and Diane Kaylor—with participating in the scheme. These individuals were accused of helping recruit investors, misrepresenting investment opportunities, and knowingly assisting in the distribution of fraudulent returns. Their involvement demonstrated that the fraud was not merely the work of one man but a coordinated network of individuals who collectively perpetuated one of the most audacious investment scams in New York history.