Agape World - A Ponzi Scheme?

Agape World is an investment firm run by Nicholas Cosmo. It seems some
of his investments may have been fraudulent. Nicholas is being accused
of running a Ponzi scheme.

What is a Ponzi scheme? A Ponzi scheme is an investment scheme in which
returns are paid to earlier investors, entirely out of money paid into
the scheme by newer investors. One person or collector takes the investments
on new participants to pay off promised returns of investments to earlier
participants.

A Ponzi scheme will work as long as there is a constant flow of new investors.
A Ponzi scheme is illegal and will always fail when the the new investments
stop.

I was a victim of a Ponzi scheme a few years back. The program was called
1Heluva.com. This was a traffic exchange in which you "invested" in
advertising and they would give you a great return on your investment.
I invested $2000 and received a $400 check my first month. Then the SEC
shut it down and I was out $1600.

Agape World's focus was on bridge loans. Bridge loans are temporary
loans that bridge the gap between the sales price of a new home and a
home buyer's new mortgage, in the event the buyer's home has not yet
sold. The bridge loan is secured to the buyer's existing home. The
funds from the bridge loan are then used as a down payment on the
move-up home.

The owner of Agape World was arrested by the FBI on Monday,January 26th
being accused of running a Ponzi scheme instead of providing commercial
bridge loans.

The economy of the US is in a crash dive so we will see more and more
stories such as the one of Agape World.