Four brokers including one Wantagh man have been arrested in connection to the Hauppauge-based Agape World Ponzi scheme.
Long Island Business News [subscription required] reported Wednesday that the FBI arrested four brokers who allegedly worked under Wantagh native Nicholas Cosmo, former head of Hauppauge-based Agape World that was used as a front to take more than $400 million from its investors.
Those arrested include Jason Keryc, 34, of Wantagh; Anthony Ciccone, 39; Anthony Massaro, 40; and Diane Kaylor, 36; according to LIBN's report.
Agape World sought investors - primarily blue collar workers - to fund short-term loans to help companies get temporary financing with promise of huge returns. In actuality, Agape World was a classic Ponzi scheme in which brokers made money by selling investments to family and friends, many of whom lost live savings and fortunes.
LIBN reports Keryc, as Agape's most prolific salesmen, paid subbrokers nearly $10 million of the $16 million commission he received. He has surrendered his Long Beach condo, a $2.7 Montauk house and more.
Keryc, who grew up across the street from Cosmo in Wantagh, and the other three arrested brokers were arraigned Wednesday at federal court in Central Islip.
Cosmo, the former head of Agape World, for his "mini-Madoff" scheme. The MacArthur High School graduate will be eligible to receive counseling for his alleged gambling problem while in prison.