The suspected mastermind of a massive Long Island-based Ponzi scheme was told today to sharply raise his offer of bail if he wants to get out of jail – while investigators said they may have uncovered hundreds of new victims.
Nicholas Cosmo’s offer of a $750,000 bond was rejected by Magistrate E. Thomas Boyle, who told him to come back to federal court in Central Islip when he has a “substantial” bail package.
Cosmo is accused of fleecing at least 1,500 investors who put $370 million into his Hauppauge-based Agape World Inc.
But since the scandal broke, postal inspectors received at least 700 e-mails from other people who said they gave money to Agape thinking they were investing in bridge loans, spokesman Al Weissmann said outside court.
The number of victims is expected to grow substantially, he said.
Among the court spectators were two Iraq war veterans who lost big on Agape.
“I was planning on buying a home this year. Not now, nothing,” said Frank Igrao, 27, an NYPD cop who gave his $63,000 life savings to Agape two years ago.
He and fellow Marine reservist Devon Thomas, and other members of their unit, who fought in Fallujah, invested in Agape after hearing of it through word of mouth.
“I think he should do 25 to life,” said Thomas, 28, of Hollis, Queens. “He’s a talented con man.”
Investigators said only $746,000 remains in Agape’s bank account.
Cosmo claimed Agape has tens of millions of outstanding loans that will protect investors. But prosecutors denied that and showed that he used Agape money to buy stock for himself in companies he claimed had loans.
During the bail hearing, Cosmo’s lawyer, Stephen Feldman, said only about $50 million is unaccounted for.
Boyle agreed with him that Cosmo, 37, is not a flight risk because he knew he was under federal investigation “for several months. . .yet made no effort to flee.”