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February 10, 2009

New Ponzi scheme hits Belfast development

By The Mainebiz News Staff

A Belfast construction project is caught up in an alleged Ponzi scheme that cheated investors out of $83 million, according to VillageSoup.com.

Hauppauge, N.Y.-based Agape World Inc. and its CEO, Nicholas Cosmo, allegedly used the redevelopment of the former Stinson Seafood plant and the construction of Stephenson Lane Carriage Homes, both in Belfast, to entice investors to enter a $370 million Ponzi scheme, in which the company offered investors as much as 14% interest on bridge construction loans, according to VillageSoup. Arthur House, the developer behind the carriage homes project and who has targeted the Stinson site for redevelopment, admitted that Agape World invested roughly $300,000 in the carriage houses. Investors in Agape World claim they were told the investment included the Stinson site and invested 100 times that amount, the news website said. Nicholas Cosmo was arrested in January.

House told VillageSoup he is trying to separate his projects from the Agape scandal. He says he has new investors lined up if federal prosecutors can clear the Carriage Homes name.

 

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