Feds Charge Fund Manager With Outlandish Fraud

Law360, New York (February 26, 2009, 12:00 AM EST) -- Federal authorities have arrested the manager of an unregistered hedge fund accused of misleading investors with outlandish claims about the fund's performance while hiding the hundreds of millions of dollars in losses the investors incurred and bouncing redemption checks.

James Nicholson, president and general partner of Westgate Capital Management LLC, was arrested by FBI officers at his Saddle River, N.J., home on Wednesday morning, according to a statement from Acting U.S. Attorney for the Southern District of New York Lev L. Dassin.

On the same day,...
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