New York lawsuit claims Bank of America aided $380 million Ponzi scheme!

New York lawsuit claims Bank of America aided $380 million Ponzi scheme!


Recent lawsuit claims Bank of America set up branch in Long Island office for $380 million fraud.

New York, NY (–A lawsuit, filed in Federal District Court in Brooklyn, New York on Thursday, alleges Bank of America set up a branch in the Long Island office of Agape Merchant Advance. The investment firm is owned by Nicholas Cosmo, who surrendered to authorities, at a Long Island train station, in January, for his suspected involvement in a $380 million Ponzi scheme, as reported by the New York Times.

Court documents, filed by fraud attorneys representing numerous investors, who fell victim to Cosmo’s and Bank of America’s securities fraud operation, claim Bank of America “established, equipped, and staffed” a branch office in Agape Merchant Advance headquarters. The class action suit, filed by securities fraud lawyers, further asserts the bank knowingly “assisted, facilitated and furthered” Cosmo’s Ponzi scheme. The legal action is demanding $400 million in damages to compensate some of the 1,500 investors who were cheated out of their investment money.

Reportedly, many of Cosmo’s investors were blue-collar workers and civil servants. The civil lawsuit also contends Cosmo told innocent investors he specialized in private bridge loans which promised returns of 48 to 80 percent a year. The plaintiff’s attorneys allege Bank of America employees worked directly out of the West Hempstead, New York office. Agape Merchant Advance and Cosmo held accounts at the main Bank of America branch about 30 miles away from the pseudo bank location. Civil trial litigators involved in the suit say this is contrary to normal banking practices. news for New York securities fraud trial attorneys.

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