After his third season, in 1877 as a member of the Louisville Grays, he was suspended from baseball for the remainder of his life for his part in throwing games for money.

The following year, after the collapse of the Association, he played for the New York Mutuals of the new National League and didn't fare much better, hitting .179 in 57 games.

It was determined that he was involved in throwing games for money along with teammates George Hall, Jim Devlin, and Bill Craver.

At this point, Louisville was in first place, but soon after Nichols' arrival, the team began to lose games at an alarming rate.

He worked at various jobs, including as a shipping clerk and inspector, and was very remorseful about his role in the scandal, making many unsuccessful attempts to earn reinstatement.