Investment Fund Manager Admits To $96 Million Ponzi Scheme

CBS New York

CENTRAL ISLIP, N.Y. (CBSNewYork) — An investment fund manager has admitted in a Long Island courtroom to stealing nearly $100 million of investors’ money in a Ponzi scheme that helped fund his interest in a Hamptons resort.

Brian Callahan, of Old Westbury, pleaded guilty Tuesday in U.S. District Court in Central Islip to securities fraud and wire fraud. He could face up to 20 years in prison on each count when he is sentenced on Aug. 8.

Federal prosecutors indicted the 44-year-old Callahan and his brother-in-law, Adam J. Manson, in August of last year.

EXTRA: Read The Full Indictment

In the indictment, prosecutors said Callahan raised more than $118 million from at least 40 investors in connection with four different investment funds that he managed between December 2006 and February 2012.

Despite assuring the investors the money would be invested in mutual funds, hedge funds and other securities, Callahan…

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