Westgate Capital
Westgate Capital Management Fraud
Below please find information on Westgate Capital Management LLC and James M. Nicholson who has been accused of a $900M fraud.
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Resource #1: (3.9.09) A week after he was arrested and charged with securities fraud, four investors have sued hedge fund manager James Nicholson.
Nicholson, who ran Pearl River, N.Y.-based Westgate Capital Management, has been hit with a $1.5 million racketeering lawsuit, filed Wednesday by four residents of Rockland County, N.Y.
Nicholson has been accused by prosecutors and the Securities and Exchange Commission with misrepresenting the value of 11 hedge funds he ran, as well as using sales materials to boast of investment successes that, according to authorities, are entirely fictitious. source
Resource #2: The vigilance of Madoff-wary investors has helped bring about the arrest of another part-time Palm Beach resident, the manager of an unregistered hedge fund accused of swindling an estimated $900 million from clients since 2004.
The FBI on Wednesday arrested James M. Nicholson, 42, owner of a penthouse in the Dunster House condominium complex, on charges of securities fraud and bank fraud. Also on Wednesday, the Securities and Exchange Commission filed a federal complaint against Nicholson and his company, Westgate Capital Management LLC of Pearl River, N.Y., seeking relief for the fraud and an injunction to stop it.
A telephone call to Nicholson's primary residence in Saddle River, N.J., was not returned by press time. A telephone line listed for Nicholson's multi-million dollar Dunster House penthouse was disconnected.
According to the complaint, the fraud includes providing prospective investors with materially false and misleading sales material and oral statements about returns, concealing Westgate's true financial condition through a fictitious accounting firm called Havener and Havener, and providing investors with fake audited financial statements from the fake firm. source
Resource #3: Hedge fund manager James Nicholson, founder and president of New York-based Westgate Capital Management, has been arrested and charged with bank and securities fraud.
He is accused of falsifying returns and creating a ‘virtual' accounting company to certify financial statements that overstated assets by millions of dollars.
Nicholson is alleged to have engaged in a scheme to defraud investors since 2004. Investors may have invested at least $100 million in funds managed by Westgate over the past five years on the basis of fraudulent claims, investigators said. source
Read about other fraud cases and general information on hedge fund regulations and compliance within our: Hedge Fund Regulation Corner | Compliance & Law Notes
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