President of firm accused of defrauding investorsPosted: Updated:
The president and general partner of a Pearl River financial management firm was arrested Wednesday and charged in federal court for allegedly defrauding investors who had put at least $100 million into his funds since 2004.
Police say James Nicholson appeared in federal court in Manhattan. Authorities claim Nicholson has defrauded hundreds of Rockland County residents, among others, out of tens of millions of dollars. Nicholson started Westgate Capital Management in 1999 at the Blue Hill Plaza in Pearl River.
According to authorities, Nicholson?s scandal came to light once investors sought to redeem their money after hearing about the alleged Ponzi scheme run by Bernard Madoff.
Based on the U.S. Attorney?s report, Nicholson told his investors that the value of Westgate Capital Management was more than $600 million, when in fact, it was much less.
The district attorney?s office, the FBI, the FCC and the U.S. Attorney?s Office gathered enough evidence in just two weeks to arrest Nicholson after the first complaint against him was filed. Investigators say anyone who thinks they were victimized by Nicholson should come forward.
AP wire reports contributed to this article.
For interview about Nicholson's arrest, go to your digital cable box and select iO Extra, Ch. 612.