Westgate Fraud Victims Get Restitution Checks

Nov 29 2011 | 9:27am ET

Victims of James Nicholson's $141 million hedge fund fraud have a little something to be thankful for in the wake of the holiday weekend.

The first restitution checks reached investors in Nicholson's Westgate Capital Management over the weekend or yesterday, the Bergen (N.J.) Record reports. The checks cut represent almost all of the $19.6 million recovered by the federal government from the Ponzi scheme, which collapsed two-and-a-half years ago.

The restituted money accounts for only about 14.5% of the money raised by Nicholson.

Nicholson's victims will likely get more money back, but not much: The U.S. Marshals Service is holding on to $25,000 as it seeks to sell a pair of properties in New Jersey owned or purchased by Nicholson. The two homes are listed for a combined total of $677,400.

Nicholson himself is serving a 40 year prison sentenced.

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