Wantagh Native Gets 25 Years for Ponzi Scheme

A Wantagh native and Hauppauge-based business owner has been sentenced to 25 years in jail for what some called a "mini-Madoff" scheme. 

Nicholas Cosmo, the former head of Hauppauge-based Agape World, was sentenced to 25 years in prison and to pay $175 million in restitution after admitting to taking more than $400 million from his investors in a Ponzi scheme, according to published reports. 

Newsday reported that Cosmo, under Agape World, used to solicit investors - primarily blue collar workers - to fund short loans to help companies get temporary financing. The MacArthur High School graduate promised 80 percent returns, but admittedly used the investors' money for personal use.

Cosmo, a Lake Grove resident who has been jailed since January 2009, freely admitted to having a gambling problem since high school. The businessman said he lost more than $80 million in failed investments in commodity futures trading. He will be able to receive treatment for his addition while in jail.