Tuesday, 30 August 2016
Last updated 9 hours ago
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.