North Jersey – Mountain Capital Management LLC, a Woodcliff Lake hedge fund, did not know it was investing in a so-called Ponzi scheme when it gave more money to Westgate Capital Management LLC in 2007, an attorney said Tuesday.
A lawsuit filed in the federal government’s civil case against Westgate – run by James Nicholson of Saddle River — claimed an interesting disclosure: In 2006, three years before Westgate collapsed, Mountain Capital allegedly saw signs of fraud.
