OT to the subject of this board but interesting nonetheless.
Financial adviser gets 40
years in prison, ordered to
repay $140 million
NEW YORK — A Rockland financial adviser who
swindled more than $100 million from investors
was sentenced Friday to 40 years in prison and
ordered to pay $140 million in restitution.
James M. Nicholson, 44, a North Rockland High
School graduate who ran his money-management
firms in Pearl River and later in New York, pleaded
guilty in December to securities fraud, investment
adviser fraud and mail fraud. He faced 30 to 45
years in prison under sentencing guidelines.
The courtroom in the U.S. District Court on Pearl
Street where Nicholson's sentencing session was
held was packed Friday. Many attending lost their
life savings, college funds or money for retirement
in Nicholson's scheme.
Prosecutors have said the money stolen amounted
to more than $140 million.
Nicholson is married with three children. He moved
from Stony Point to a mansion in Saddle River, N.J.,
and lived a life of extravagance, investing money in
an airplane and purchasing real estate, including a
$27 million oceanfront house in Southampton and
an $8.5 million condominium in Manhattan.
James Mitchell, Nicholson's lawyer, addressed the
court, reiterating what he spelled out in the
sentencing memorandum he wrote on behalf of the
defendant. He said Nicholson committed serious
crimes and should be punished, but that he wanted
the sentence to be "just and fair."
Nicholson's lawyers had petitioned the judge for a
sentence "substantially below the guideline range,"
saying that the suggested range in the guideline w
as "unreasonable." On Friday, Mitchell asked for 10
years in prison, significantly below the guideline,
stating that with that lesser jail time Nicholson
would have a chance to make up for the harm that
he caused to his victims. Mitchell also told the
judge that since he was arrested, Nicholson's
punishment had already started because he was
away from his three young sons, to whom he has
been close.
David Leibowitz, prosecutor with the U.S. Attorney's
Office, however, told the judge that Nicholson's case
was a "serious and extraordinary" one. Although he
has rarely asked for the maximum sentence in his
eight years in the office, he had to seek the 45-year
term because of the significance of this case, he
said.
Prosecutors had told the judge that Nicholson's
criminal activities through his money-management
firm, Westgate Capital Management LLC, spanned
nearly a decade and constituted the classic "Ponzi
scheme style," victimizing more than 400 investors,
including friends and relatives. His activities
surpassed most of those committed by white-collar
criminals, prosecutors said.
Just before the sentencing, nine victims expressed
their rage, anger, sadness and despair caused by
their huge financial setbacks.
Countering Nicholson's claim seeking mercy on
behalf of his young sons, some victims charged that
they lost money that was supposed to ensure their
children's lives or their education.
Many of them were in tears and said that his crime
altered generations of lives because they lost their
hard-earned money that they would never be able to
recover.
Nicholson expressed his remorse and apologized
for his actions, saying that he understood that his
actions had caused serious damage to his clients.
As he began his sentencing statement, Sullivan
mentioned the difficulty he had deciding Nicholson's fate because it was hard for him to
understand why Nicholson, with his fine
background and well-liked personality, ended up
committing the serious crimes.
"I don't know what to make of this," Sullivan said. "I
really don't know."
Sullivan also said he considered Nicholson's boys,
who are already suffering because of the loss of
their father.
Sullivan, however, said that he had to consider that
hundreds of victims and their relatives were forced
to alter their lives because of Nicholson's theft.
"Any lesser sentence would be inappropriate,"
Sullivan said. "And it would send a wrong message."
Jeannie Sidoti of Highland Mills, N.Y., lost her 401
(k) rollover. Her 82-year-old mother lost her life
savings of $89,000. Sidoti said that although she
felt sad for Nicholson's family, the sentence was
appropriate.
"I think the judge considered everything that was
presented," Sidoti said. "I think it's fair."
Market Data 
Markets 
AI
