Saturday, 1 November 2014
Last updated 15 hours ago
Feb 11 2010 | 8:05am ET
The receiver in the James Nicholson hedge fund fraud case earned $2.4 million for his work in the first nine months of the year. For the last three, he’s getting nothing, for now.
The federal judge overseeing the $133 million Ponzi scheme case has rejected Lee Richards’ request for $266,000 in fees and expenses for the fourth quarter. U.S. District Judge Richard Berman said the new payout would bring to 30% the receiver’s share of the $9.5 million recovered.
The judge asked the receiver and his attorneys to “reexamine” their request.
In his request, Berman noted that he had already discounted the bill by 38%. The request also included more than $90,000 for forensic accounting form AlixPartners.
Nicholson pleaded guilty in December. The Westgate Capital Management founder admitted lying to investors from 2004 until December 2008, when $5 million in redemption checks bounced. The collapse of Lehman Brothers precipitated the collapse of Nicholson’s seven hedge funds. He claimed to be managing $900 million when his accounts held no more than $60 million.
Nicholson faces as much as 45 years in prison when he is sentenced on April 30.
Sep 22 2014 | 4:15pm ET
"I tell people that everybody likes good news and so if you have good performance that’s wonderful,” explains Mike McKitish of Peddie School's endowment, “but it’s the people that want to talk about the bad news or where they drifted and how they came back and how they stayed to their discipline…” that he wants to hear from. Read more…
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