2017-03-21 DOJ SDNY press_release 118 KB 5,579 chars

Long Island Man Found Guilty Of Defrauding South Korean School Of Over $5 Million

Caption: United States v. Cosmo Dabi International Trading Group Inc., et al.

summary

William Cosme was found guilty of wire fraud and aggravated identity theft for deceiving a South Korean Christian school into sending him $5.5 million under false pretenses of securing a $55 million loan, then spending the funds on luxury cars, gambling, and personal expenses, facing up to 20 years in prison plus mandatory minimums.

paragraph

William Cosme, a Long Island man, was convicted of wire fraud and aggravated identity theft for defrauding a South Korean Christian missionary school of $5.5 million by falsely promising to invest the funds to secure a $55 million loan for school expansion. Instead, he diverted the money into personal accounts and spent it on a Lamborghini ($314,000), a Ferrari ($287,000), a Cadillac Escalade, over $200,000 in Las Vegas gambling, and other personal luxuries. He also fabricated his company’s credentials, impersonated two individuals as officers of his firm, and orchestrated a sham audit to justify keeping the deposit, facing up to 20 years for wire fraud, a mandatory two-year minimum for identity theft, and fines up to twice the loss amount.

narrative

William Cosme, a 51-year-old resident of Jericho, New York, was found guilty in Manhattan federal court of wire fraud and aggravated identity theft for orchestrating a $5.5 million fraud against a Christian missionary school in South Korea. He falsely claimed to operate Cosmo Dabi International Trading Group Inc., a global private equity firm managing over $11 billion in assets, and promised to invest the school’s deposit to secure a $55 million loan for campus expansion. Instead, after receiving the $5.5 million wire transfer in January 2011, Cosme funneled the funds into personal accounts and spent them on luxury vehicles—including a $314,000 Lamborghini, a $287,000 Ferrari, and a Cadillac Escalade—as well as a 110-day gambling spree in Las Vegas that cost over $200,000, plus rent for his girlfriend and other personal expenses. To conceal his fraud, he fabricated a sham audit process to falsely claim the school was in default and used the identities of two real individuals without authorization to pose as officers of his company. Cosme made repeated false assurances to the school’s leadership about the status of the loan while never making any legitimate investment. He faces a maximum of 20 years in prison for wire fraud, a mandatory minimum of two years for aggravated identity theft, up to three years of supervised release, and fines of up to twice the $5.5 million loss, with sentencing scheduled for June 21, 2017.

Enriched metadata

Scheme: advance-fee (80%)
Court: Southern District of New York
Outcome: convicted · 2017-03-21
Civil penalty: $250,000
Victim loss: $55,000,000

Classified advance-fee(confidence 80%). No EDGAR filing fingerprint (criminal/DOJ-side scheme). detection rule →

Extracted insights

Dollar amounts 8

$11.00B $11b ≥$1B
$55.00M $55 million $10M–$100M
$5.50M $5.5 million $1M–$10M
$5.00M $5 Million $1M–$10M
$314K $314,000 $100K–$1M
$287K $287,000 $100K–$1M
$250K $250,000 $100K–$1M
$200K $200,000 $100K–$1M

Entities 3

company cosmo dabi international trading group inc.
person Joon H. Kim
person william cosme

Triples 12

William Cosme was found guilty of defrauding a Christian missionary school in South Korea of $5.5 million
Joon H. Kim announced William Cosme was found guilty
The jury convicted William Cosme on both counts
William Cosme spent stolen money on a Lamborghini, a Ferrari, and a Cadillac Escalade
William Cosme spent stolen money on a 110-day gambling spree in Las Vegas
William Cosme faces time in a federal prison
Cosmo Dabi International Trading Group Inc. entered into an agreement with a Christian missionary school in South Korea
The International School sent sent approximately $5.5 million to an account maintained by William Cosme
William Cosme transferred funds into other accounts in his own name
William Cosme purchased a Lamborghini costing nearly $314,000
William Cosme purchased a Ferrari costing nearly $287,000
William Cosme failed to invest $5.5 million as promised

View original DOJ press releasejustice.gov

Extracted body text (5,579c)

Press Release Long Island Man Found Guilty Of Defrauding South Korean School Of Over $5 Million Tuesday, March 21, 2017 Share FacebookLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. XLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. LinkedInLinks to other government and non-government sites will typically appear with the “external link” icon to indicate that you are leaving the Department of Justice website when you click the link. Email For Immediate Release U.S. Attorney's Office, Southern District of New York Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced that WILLIAM COSME, a/k/a “William Cosmo,” was found guilty today in Manhattan federal court in connection with a scheme to defraud a Christian missionary school in South Korea of $5.5 million dollars. The jury convicted COSME on both counts with which he was charged following a one-week trial before U.S. District Judge Loretta A. Preska. Acting Manhattan U.S. Attorney Joon H. Kim said: “As a unanimous jury swiftly concluded after trial, William Cosme duped and defrauded a South Korean international school out of $5.5 million, money the school needed to carry out its mission of educating children. Cosme then took this stolen money and spent it lavishly on himself, including on a Lamborghini, a Ferrari, and a Cadillac Escalade, not to mention a 110-day gambling spree in Las Vegas. Cosme now faces time in a federal prison for his brazen crimes.” According to the Indictment, other filings in Manhattan federal court, and evidence admitted at trial: COSME purported to operate a “Privately Held, Global, Private Equity family practice with a concentration on it’s [sic] own Family’s Private Wealth Management, Commercial [real estate], physical gold trade and Business Consulting.” COSME further claimed that the entity through which he did business “manage[d] family assets with a Net Asset Value in excess of USD $11b on a global basis” and that his clientele included royalty and the families of royalty. None of those claims was true. In about January 2011, COSME, acting through his company Cosmo Dabi International Trading Group Inc. (“Cosmo Dabi”), entered into an agreement with a Christian missionary school located in South Korea (the “International School”) whereby Cosmo Dabi would lend the International School approximately $55 million and the International School would make a deposit of approximately $5.5 million (the “Equity Deposit”), which COSME would invest in order to generate funds to loan the International School. The International School sought to use the proceeds of the loan to expand its operations in South Korea. In January 2011, the International School sent by wire transfer approximately $5.5 million to an account maintained by COSME at a bank. Thereafter, COSME transferred the funds that the International School had entrusted to him into other accounts, including accounts in his own name rather than that of his company. From the other accounts, COSME began a run of unauthorized personal spending, including purchasing a Lamborghini costing nearly $314,000 (which itself was meant to secure COSME a preferred spot on a waiting list to purchase an even more expensive Lamborghini); a Ferrari costing nearly $287,000; a Cadillac Escalade; a sport utility vehicle for a family member of COSME’s; a 110-day gambling trip to Las Vegas; gaming losses while on that trip in excess of $200,000; paying for his girlfriend’s rent; and otherwise funding a lavish lifestyle. All the while, COSME failed to invest the $5.5 million as he had promised, and made a series of misrepresentations to the leadership of the International School as to why they had not been issued their promised loan payments. COSME also devised and executed a sham audit process in order to convince the International School that they were in default of their agreement and that COSME could keep the school’s deposit for himself. In connection with his fraud on the International School, COSME also used, without authorization, the identities of two individuals by falsely representing to the International School that these individuals were officers of Cosmo Dabi. * * * COSME, 51, resides in Jericho, New York. He faces a minimum sentence of two years in prison for his conviction for aggravated identity theft, and a maximum sentence of 20 years in prison for his wire fraud conviction. COSME also faces a maximum term of three years of supervised release and a fine of the greatest of $250,000, or twice the gross pecuniary gain derived from the offense or twice the gross pecuniary loss to the victim. COSME’s sentencing is set for June 21, 2017, before the Honorable Loretta A. Preska. The maximum potential sentences are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge. Mr. Kim praised the outstanding efforts of Federal Bureau of Investigation in the investigation. The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Noah D. Solowiejczyk and Martin S. Bell are in charge of the prosecution. Updated March 21, 2017 Topic Financial Fraud Component USAO - New York, Southern Press Release Number: 17-091

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