Nicholson Sent To Upstate Prison

Jan 18 2011 | 8:17pm ET

Hedge fund fraudster James Nicholson will do his time for running a $140 million Ponzi scheme where the world’s best winter athletes once rested their heads.

Earlier this month, Nicholson was sent to a medium security prison in Ray Brook, N.Y., about five miles up the road from Lake Placid, site of the 1980 Winter Olympics. After the games, the Olympic Village was turned into a prison.

Nicholson was sentenced to 40 years in prison in November. He pleaded guilty to fraud in December 2009 and has been imprisoned in a New York City holding facility since his arrest in February of that year.

Nicholson’s Ponzi scheme fell apart in December 2008. He admitted that he began lying to investors as far back as 2004.

The Ray Brook prison is about five hours’ drive from Nicholson’s home in Saddle River, N.J. The judge who sentenced him had recommended he serve his sentence at Fort Dix, N.J., only two hours from his family.

According to the federal Bureau of Prisons, Nicholson is estimated to be released on Dec. 31, 2043. He’ll be 77 years old.


In Depth

Debunking Conventional Investment Wisdom

Feb 8 2017 | 3:22pm ET

Due diligence in the hedge fund world has long involved some combination of the...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

iCapital Network: The Trump Effect On Direct Lending

Feb 23 2017 | 4:21pm ET

The arrival of the Trump Administration has raised questions among private debt...