Judge: Alleged NY Ponzi schemer broke bail rules; sets hearing on whether to re-jail him

Judge: Accused NY schemer broke bail rules

CENTRAL ISLIP, N.Y. — A federal judge says a New York businessman accused of orchestrating a $413 million Ponzi scheme has violated conditions of his release on bail.

But U.S. District Court Judge Denis Hurley allowed Nicholas Cosmo to remain free pending a Friday hearing on whether to revoke his $1.25 million bail package.

Hurley agreed with prosecutors following a two-day hearing that Cosmo violated bail conditions by using a computer, and asking his girlfriend to download some of his business e-mails.

The former head of Long Island-based Agape (uh-GAH’-pay) World and Agape Merchant Advance in New York City has pleaded not guilty to charges he fleeced some 6,000 people.

He was released in July provided he remain under house arrest at his parent’s Wantagh (WAHN’-tah) home, which includes monitoring by a private security firm.