Oct 10, 2009 9:31 am US/Eastern
Judge Jails NY Businessman Accused In Ponzi Scheme
CENTRAL ISLIP, N.Y. (CBS) ―
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Dressed in black and cuffed in the company of U.S. Postal inspectors, Nicholas Cosmo arrived to face the music in connection with what appears to have been a $380 million Madoff-like Ponzi scheme.
CBS
A federal judge has revoked the bail of a New York businessman accused of orchestrating a $413 million Ponzi scheme.
U.S. District Judge Denis Hurley ordered Nicholas Cosmo jailed immediately on Friday, a day after ruling that he violated bail conditions by using a computer and asking his girlfriend to download business e-mails.
Cosmo formerly headed the Long Island-based Agape World and Agape Merchant Advance in New York City.
He's pleaded not guilty to charges of fleecing some 6,000 people.
Cosmo had been free on a $1.25 million bail package allowing him to stay under house arrest.
The judge says Cosmo had shown himself to be untrustworthy and unlikely to abide by the conditions of his release.
Cosmo was arrested on January 26, 2009.
(© 2010 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)
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