Wall Street Journal
According to his attorneys, Mr. Cosmo intends to work with authorities "to allay investors' concerns." A federal judge in New York's Eastern District ordered him held pending a bail hearing Thursday.
More schemes are emerging now, experts say, in part because of the economic downturn. Tough times have prompted people to seek to cash in their investments, only to find out their money is missing.
There was also the case of Marcus Schrenker, an Indiana financial adviser who was arrested in Florida earlier this month after allegedly trying to stage his death in a plane crash as investigators probed his businesses.