We’ve often speculated on the probable connection between Bernie Madoff’s ponzi scheme and organised crime. But Charlie Gasparino has turned up a real connection between alleged ponzi scheme Nicholas Cosmo and the Genovese crime family.
Accused Ponzi-schemer Nicholas Cosmo onced owned tens of thousands of dollars in gambling debt to the Genovese Crime family, the latest twist in a scheme federal authorities believed bilked small investors out of $370 million, according to people with knowledge of the matter.
A former Genovese family associate, Michael Durso, who is now in the federal witness protection program, and another associate met Cosmo in in the late 1990s, sometime around 1997, and it was at that time when they put pressure on Cosmo to pay around $139,000 owed to loan sharks connected with the Genovese family, according to people with knowledege of the matter.
At one point, members of the Gambino family intervened on Cosmo’s behalf and paid some of the debt, these people said. Durso, these people say, has been in contact with the FBI about his alleged involvement with Cosmos. An attorney for Cosmo when informed about the alleged connections with New York crime families had no comment.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.