Long Island real estate manager pleads guilty in $96M scheme

Prosecutors say Adam Mason siphoned money from investors to keep Montauk resort afloat

TRD New York /
May.May 13, 2014 11:00 AM

Long Island real estate manager Adam Manson pleaded guilty in a $96 million Ponzi scheme Monday, and will be sentenced to up to five years in prison as part of a plea deal.

Manson, a co-owner of Montauk-based Panoramic View Resort & Residences, was accused of siphoning money from investors in order to keep the resort afloat, Newsday reported. He pleaded guilty to one count of conspiracy to commit securities fraud at federal court in Central Islip, and agreed to forfeit all of the unsold units at the resort as part of a plea agreement. The unsold properties are valued at more than $60 million, according to Newsday.

Prosecutors accused Manson and brother-in-law Brian Callahan, an investment advisor, of siphoning money from investors in order to keep the resort afloat. Callahan pleaded guilty to securities and wire fraud last month, and could face up to 24 years and three months in prison. He also forfeited $67.4 million to make recitation to fraud victims.

“Through lies and deceit … [Callahan] misled investors and stole investor funds … to support a lavish lifestyle and operate a multimillion-dollar Ponzi scheme,” Loretta Lynch, Eastern District U.S. attorney, said in an April statement. [Newsday]Julie Strickland

 

Related Articles

arrow_forward_ios
Savraj Gata-Aura

Bar Works Ponzi schemer sentenced to prison

Bar Works Ponzi schemer sentenced to prison
Beverly Hills properties once owned by convicted RE Ponzi schemer Shapiro sell for $69M

Beverly Hills properties once owned by convicted RE Ponzi schemer Shapiro sell for $69M

Beverly Hills properties once owned by convicted RE Ponzi schemer Shapiro sell for $69M
Clockwise from top: Robert Shapiro, Viktor Gjonaj, and Robert C. Morgan (Credit: Rochester Institute of Technology, LinkedIn, iStock)

Robert Shapiro is not alone: 5 real estate Ponzi schemes you should know about

Robert Shapiro is not alone: 5 real estate Ponzi schemes you should know about
Renwick Haddow and a closed Bar Works location at 41 West 46th Street (Credit: Google Maps)

Behind Bars: Bar Works co-conspirator James Moore convicted of wire fraud

Behind Bars: Bar Works co-conspirator James Moore convicted of wire fraud
Luxury home developer arrested on federal charges over $1.3B Ponzi scheme

Luxury home developer arrested on federal charges over $1.3B Ponzi scheme

Luxury home developer arrested on federal charges over $1.3B Ponzi scheme
Westchester & Fairfield Cheat Sheet: White Plains developer heads to prison, Marc Jacobs buys in Rye, Tommy Mottola sells in Greenwich… & more

Westchester & Fairfield Cheat Sheet: White Plains developer heads to prison, Marc Jacobs buys in Rye, Tommy Mottola sells in Greenwich… & more

Westchester & Fairfield Cheat Sheet: White Plains developer heads to prison, Marc Jacobs buys in Rye, Tommy Mottola sells in Greenwich… & more
Developer behind $58M Ponzi scheme gets 6 years in prison

Developer behind $58M Ponzi scheme gets 6 years in prison

Developer behind $58M Ponzi scheme gets 6 years in prison
Hamptons Cheat Sheet: Zillow incurs wrath of East End brokerages… & more

Hamptons Cheat Sheet: Zillow incurs wrath of East End brokerages… & more

Hamptons Cheat Sheet: Zillow incurs wrath of East End brokerages… & more
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...