Westgate Capital's James Nicholson Sentenced to 40 Years for Ponzi Scheme
Westgate Capital Management LLC founder James Nicholson was sentenced to 40 years in prison after pleading guilty to defrauding investors in a Ponzi scheme.
U.S. District Judge Richard J. Sullivan imposed the sentence at a hearing today in Manhattan. The government had requested a term of 45 years; Nicholson’s lawyers asked Sullivan to sentence him to 10 years.
Prosecutors claimed Nicholson’s fraud cost investors $141 million. Defense lawyers claimed in court papers that investors lost no more than $50 million.
Nicholson, 44, of Saddle River, New Jersey, admitted he lied to investors about stock trades, the returns on his investments and the amount he had under management. He said he controlled $50 million to $60 million, while telling investors he had $900 million under management, prosecutors said.
The case is U.S. v. Nicholson, 09-cr-414, U.S. District Court, Southern District of New York (Manhattan).
To contact the reporter on this story: Bob Van Voris in New York federal court at rvanvoris@bloomberg.net.
To contact the editor responsible for this story: David E. Rovella at drovella@bloomberg.net.
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