Brian Callahan Pleads Guilty to Securities Fraud as a Result of a $96 million Ponzi Scheme
Brian R. Callahan pled guilty to securities fraud and wire fraud for operating a $96 million Ponzi scheme through various offshore investment funds.
Callahan used six offshore entities to perpetrate the investment fraud. Instead of investing his clients’ funds, he used the money to support a lavish lifestyle and operate a multi-million dollar Ponzi scheme.
Callahan assured investors that he would apply their investments in mutual funds, hedge funds, and other securities. Instead of investing the money as he promised, Callahan misappropriated approximately $96 million and began to operate the investment funds as a large-scale Ponzi scheme. In addition to using the funds to support a way of life seen in episodes of Lifestyles of the Rich and Famous, Callahan diverted millions of dollars towards the Panoramic View, an unprofitable 117-unit beachfront resort and residence development in Montauk, New York, that he owned with his brother-in-law, Adam Manson.
Callahan also used investor money to make payments to his victims to give the appearance that their investments were real and profitable to keep the Ponzi scheme afloat.
The Peiffer Wolf attorneys often represent investors who lose money as a result of Ponzi schemes, investment fraud, or stockbroker misconduct. They are currently investigating the possibility of assisting victims with the recovery of their losses in connection with investments made with Brian Callahan. They take most cases of this type on a contingency fee basis and advance the case costs, and only get paid for their fees and costs out of money they recover for their clients.
Investors who believe they may have lost money as a result of their investments with Brian Callahan may contact the securities lawyers at Peiffer Wolf, Jason Kane or Joe Peiffer, for a free, no-obligation evaluation of their recovery options, at 585-310-5140.