And yet another suspected Ponzi scheme is uncovered.
"A New York businessman sought by federal authorities in connection with a suspected $380 million Ponzi scheme has been arrested and charged...the businessman, Nicholas Cosmo, founder of Agape World in Hauppauge, surrendered at the Long Island Rail Road train station in Hicksville, N.Y."
And this is classic:
"In 1997, while working as a stockbroker at Continental Broker-Dealer Corporation in Carle Place, N.Y., Mr. Cosmo was accused of misappropriating funds, according to court records. He pleaded guilty to a single federal charge in 1999 and was sentenced to 21 months in prison and ordered to pay at least $135,000 in restitution. He was also told to undergo “extensive gambling therapy” while in prison, according to court records."
Aren't there supposed to be regulators who monitor this kind of thing? Between Madoff and the others, we could probably finance 10% of the TARP program with the money these people stole.
No, instead we should focus on the important things - the lack of an uptick rule is still wreaking havoc in the markets.
10:45PM edit - the New York Times printed a good piece today, "Troubled Times Bring Mini-Madoffs to Light".
A Simple Mistake Traders Make
11 hours ago