SEC Charges 14 in NY-Based Ponzi Scheme

Yesterday, June 12, 2012,  The Securities and Exchange Commission (SEC) charged 14 sales agents who misled investors and illegally sold securities for a Long Island-based investment firm at the center of a reported $415 million Ponzi scheme. 

The SEC alleges that the agents promised falsely that investor returns would be as high as 12 to 14 percent in several weeks when they sold investments offered by Agape World Inc. The Agape securities they sold did not exist, and investors were lured into a Ponzi scheme. The agents allegedly received $52 million in commissions and payments out of investors funds. None of these sales agents were even registered with the SEC to sell securities, nor were they registered with a registered broker or dealer. Agape also was not registered with the SEC.

Over 5,000 investors nationwide were impacted by this scheme that lasted from 2005 to January 2009, when Agape’s president and organizer of the scheme Nicholas J. Cosmo was arrested. He was sentenced to 300 months in prison and ordered to pay more than $179 million in restitution.

On the SEC's website the following names of the agents involved were listed:

• Brothers Bryan Arias and Hugo A. Arias of Maspeth, N.Y
• Brothers Anthony C. Ciccone of Locust Valley, N.Y. and Salvatore Ciccone of Maspeth, N.Y.
• Brothers Jason A. Keryc of Wantagh, N.Y. and Michael D. Keryc of Baldwin, N.Y.
• Siblings Martin C. Hartmann III of Massapequa, N.Y. and Laura Ann Tordy of Wantagh, N.Y.
• Christopher E. Curran of Amityville, N.Y
• Ryan K. Dunaske of Ronkonkoma, N.Y.
• Michael P. Dunne of Massapequa, N.Y
• Diane Kaylor of Bethpage, N.Y
• Anthony Massaro of Boynton Beach, Fla
• Ronald R. Roaldsen, Jr. of Wantagh, N.Y.

SEC’s complaint charges Bryan and Hugo Arias, Anthony and Salvatore Ciccone, Jason and Michael Keryc, Dunne, Hartmann, Kaylor, Massaro, and Tordy with alleged violations of Section 17(a) of the Securities Act of 1933, and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder. The complaint charges all 14 defendants with violations of Section 15(a) of the Exchange Act, and Sections 5(a) and 5(c) of the Securities Act.