‘Mini-Madoff’: 25-year sentence for $400 million Ponzi scheme

WHAT: New York businessman Nicholas Cosmo, 40 — dubbed the “mini-Madoff” because he was arrested shortly after the billion-dollar swindler — was sentenced to 25 years in prison and ordered to pay $179 million in restitution, which he doesn’t have.

HOW: Cosmo promised some 4,000 investors 80 percent returns from a fund that made short loans to companies needing temporary financing. Instead he used the money for personal purchases and failed commodities futures trading.

WHY IT’S OUTRAGEOUS: Unlike Bernard Madoff, who cheated charities, celebrities and institutional investors out of billions, Cosmo’s Ponzi scheme targeted mainly blue-collar workers and destroyed their life savings.


Daily OutrageOpinionOther OpinionSFExaminer

Just Posted

Suicide is the second leading cause of death for adolescents in the U.S. (Shutterstock)
Why California teens need mental illness education

SB 224 calls for in-school mental health instruction as depression and suicide rates rise

Ahmad Ibrahim Moss, a Lyft driver whose pandemic-related unemployment benefits have stopped, is driving again and relying on public assistance to help make ends meet. <ins>(Kevin N. Hume/The Examiner)</ins>
How much does gig work cost taxpayers?

Some drivers and labor experts say Prop. 22 pushed an undue burden on to everyday taxpayers.

Gov. Gavin Newsom, who visited the International Brotherhood of Electrical Workers Local 6 headquarters on Recall Election Day, handily won after a summer of political high jinks.	<ins>(Kevin N. Hume/The Examiner)</ins>
Lessons from a landslide: Key takeaways from California’s recall circus

‘After a summer of half-baked polls and overheated press coverage, the race wasn’t even close’

The Kimpton Buchanan Hotel in Japantown could become permanent supportive housing if The City can overcome neighborhood pushback. (Kevin N. Hume/The Examiner)
Nimbytown: Will SF neighborhoods allow vacant hotels to house the homeless?

‘We have a crisis on our hands and we need as many options as possible’

Most Read