43-year-old fund manager James Nicholson was arrested last February for cheating investors of more than $100 million. He was charged with securities fraud, investment adviser fraud and mail fraud, and has now finally come clean before Judge Richard Sullivan in federal court in Manhattan. He pleaded guilty to fraud charges and admitted to lying to hundreds of investors about the health of his business.
Nicholson admitted to carrying out the fraud between 2004 and last February. Prosecutors say that he cheated investors of between $100 million to $200 million dollars, but he maintains the loss was no more than $20 million. Judge Sullivan says Nicholson could face up to 45 years in prison when he is sentenced on April 30, 2010.