A Ponzi Lawsuit That Sounds Like a Scam
Case against Entrepreneur laughable.
Last May, Entrepreneur put Agape World, a Hauppauge, New York-based company, on its â€śHot 100â€ť list of fast-growth businesses.
In January, federal agents executed warrants on Agapeâ€™s offices, and Nicholas Cosmo [above], founder and owner of Agape World, was arrested and charged with a $370 million mail fraud. According to Time.com, it appeared Cosmo was running an alleged Ponzi scheme, similar to that of Bernie Madoff.
Earlier this month, a group of 87 investors (which may or may not include the actor Vincent Dâ€™Onofrio) filed a $178 million lawsuit against Entrepreneur, alleging the magazine misled them by putting Agape on its â€śHot 100â€ť without checking them out thoroughly.
Entrepreneur is no stranger to legal battles, many involving the use of the word â€śentrepreneur,â€ť for which it holds a trademark and doesnâ€™t mind flexing its legal muscle against other companies that use the word in their names. (Which, to me, would be like Time suing Rolex.)
This lawsuit, however, sounds like a scam.
That Entrepreneur should be responsible for investments made in a company thatâ€™s found to be fraudulent is laughable. Should investors sue Fortune because GM was ranked number five on the Fortune 500? Should I sue Sports Illustrated for picking the Mets to win the World Series when they crumble in September, and I lose my shirt in Vegas?
Of course not. Â
According to the suit, Entrepreneur â€śdid not attempt to verify the information it received from Agape, at no time did Entrepreneur visit Agape headquarters.â€ť
How about those 87 investors try doing their own homework? And use something other than Entrepreneur?
Click here to read FOLIO:â€™s report on the suit. Click here for a PDF of the lawsuit. And click here for background on the federal case against Agape.
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