Nicholson Arrested for Fraudulent $900 million Hedge Fund
On February 25th, a man named James M. Nicholson was arrested for, allegedly, running a $900 million hedge fund investment fraud. The Securities and Exchange Commission (SEC) has accused the 42-year-old, of securities fraud and bank fraud.
Nicholson managed a hedge fund under his company Westgate Capital Management LLC of Pearl River, NY, which is not registered with the SEC. The fraudster, allegedly, convinced investors to hand over money with misleading and untrue sales material and outright lies, much like the recently infamous Allen Stanford. He fallaciously told investors he managed assets totaling $600 to $900 million and he produced fake financial statements through a fake accounting firm he dreamed up called Havener & Havener.
According to the SEC, since 2004 the schemer swindled nearly $900 million from naive investors. Soon after Bernie Madoff's Ponzi scheme was busted, Westgate investors, like many others, began to worry and attempted to retrieve their investments. When checks started to bounce in December the SEC began an investigation. To date, about 24 checks written to investors, totaling nearly $5 million, have bounced. In addition to the bounced checks other investors have unsuccessfully attempted to recover more than $10 million from Nicholson.
Nicholson is being represented by Madoff's attorney Ira Sorkin and is currently under house arrest with bail set at $10 million.
Investment Fraud Attorney
Investment fraud can be difficult to recover from on your own. If you have been decieved by a crooked hedge funds manager a securities attorney can help you recover lost investments. Contact an experienced securities attorney at Arnold & Itkin LLP for a free consultation.
