Montauk resort owners charged with $100M Ponzi scheme
The owners of the Panoramic View Resort & Residences in Montauk have been charged with funneling cash through the waterfront resort property as part of a $100 million Ponzi scheme, Patch reported.
The U.S. Attorney’s Eastern District office accused Hamptons real estate developer Adam Manson and investment fund manager Brian Callahan with 24 counts related to securities fraud and wire fraud. Both defendants pleaded not guilty.
Callahan channeled “millions of dollars” towards the Panoramic View, a 117-unit beachfront resort and residential development that he owns with Manson, prosecutors claimed. The two men allegedly used the money to purchase a condominium in Westhampton and houses in Old Westbury, N.Y., as well as luxury cars.
“Callahan gave his word that he would invest his clients’ funds safely and responsibly in established vehicles,” U.S. Attorney Lorretta Lynch said in a statement to Patch. “Instead, he simply stole the funds to prop up his partner’s failing investment. To conceal their status as business failures, the defendants employed all the tricks in the typical con man’s bag.”
Patch didn’t include a comment from the defendants or their attorneys. [Patch] – Hiten Samtani