Sunday, October 23, 2011

MINI-MADOFF PONZI SCHEMER SENTENCED TO 25 YEARS

For those readers who have been waiting for the oft-delayed sentencing of the so-called "Mini-Madoff," Nicolas Cosmo, a US District Judge* in New York has given the Ponzi schemer twenty-five years. Cosmo, who created bogus investments that were purportedly 100% collateralised by commercial assets liens, took $413m from his victims.  The precise amount of their losses are not yet known.

Will this sentencing start a trend of  long-term sentences for major Ponzi schemers ? We cannot say; perhaps the Mini-Madoff label placed upon him by the media unofficially operated to enhance his sentence, but Cosmo will not be  able to fleece any  additional innocent investors for a long, long time.
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* United States vs. Cosmo,  Case No.: 2:09-cr-00255-DRH-ETB (EDNY).

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