Two people have been convicted of helping a Long Island Ponzi schemer dubbed “Mini-Madoff” con about 3,800 investors out of $147 million before the scam unraveled in the 2008 Wall Street crisis.
Diane Kaylor, 39, of Bethpage, and 38-year-old Jason Keryc of Wantagh were found guilty Tuesday at Central Islip federal court of securities fraud, conspiracy, mail fraud and wire fraud. The both worked for the now-infamous Hauppauge-based Agape World, Inc.
“Kaylor and Keryc convinced thousands of hard-working, middle class Americans to invest their life savings, their children’s college funds, or their retirement money in Agape, knowing that Agape was a Ponzi scheme,” said Loretta Lynch, U.S. Attorney for the Eastern District of New York.
Prosecutors said the duo made commission off of the investments they secured with Agape, which was founded by Nicholas Cosmo, who was sentenced in 2011 to 25 years in federal prison after pleading guilty to mail and wire fraud.
Instead of investing the money, Agape used investors’ funds to pay returns to previous investors, authorities said.
Kaylor and Keryc made approximately $3.4 million and $8.9 million, respectively, according to investigators.
Six other Agape workers have also been convicted but have yet to be sentenced by Judge Denis Hurley.
Kaylor and Keryc face up to 20 years in prison on each count when they are sentenced July 23.
Kaylor’s attorney reportedly plans to appeal the verdict.