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Guilty Plea in $133 Million Ponzi Scam

MANHATTAN (CN) - The president and sole manager of Westgate Capital Management pleaded guilty to running a $133 million Ponzi scheme. James Nicholson, 43, of Saddle River, N.J., faces up to 45 years in prison for three felony fraud counts.

"James Nicholson swindled his victims out of $133 million by making false assurances and claiming false profits," the U.S. Attorney said in a statement announcing the guilty plea.

Investors lost $133 million while Nicholson propped up his floundering company with false claims from 2004 through 2007, federal prosecutors said.

He will be sentenced on April 30, 2010, for securities fraud, mail fraud, and investment adviser fraud.

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