Reuters: NY financier arrested in alleged $400m Ponzi scam

Authorities on Monday arrested the chief executive of a private New York financing firm on suspicion of running a purported Ponzi scheme that attracted $400 million in investments, U.S. law enforcement officials said.
Nicholas Cosmo, head of Agape World Inc on New York's Long Island, was said to provide commercial bridge loans, but was instead operating a traditional Ponzi scheme in which early investors are paid with the money of new clients. Victims were introduced to Agape World through trusted friends, family members or colleagues who reported returns of 14 percent in less than three months. The business purported to be making high-interest bridge loans to construction companies in need of fast cash.