The Real Deal New York

Investor admits to $96M Ponzi scheme tied to Montauk resort

Brian Callahan pleads guilty to securities and wire fraud

An investment fund manager in Old Westbury, N.Y., pleaded guilty to securities and wire fraud yesterday in a $96 million Ponzi scheme case.

Brian Callahan is expected to receive up to 20 years in prison at his sentencing, slated for August 8. Last year, he was hit with an indictment for raising more than $118 million from 40 investors over a six-year period. Callahan stole $96 million of the funds that he said would be invested.

He used some of the funds to acquire and run the iconic Panoramic View Resort and Residence in Montauk. [Newsday]Mark Maurer