- Associated Press - Thursday, December 17, 2015

CENTRAL ISLIP, N.Y. (AP) - A federal judge in New York has ordered the sellers of a beachfront resort to forfeit $40 million in proceeds from the court-ordered sale.

The sale of the Panoramic View Resort and Residences in Montauk was ordered after the owners pleaded guilty to running a $100 million Ponzi scheme to pay for it.

Adam Manson and his brother-in-law Brian Callahan pleaded guilty last year to securities fraud and wire fraud.

Callahan admitted raising more than $118 million from investors who were promised the money would be invested in mutual funds, hedge funds and other securities.

Instead, Callahan siphoned off about $96 million and used some of it to purchase the Panoramic View.

Judge Arthur Spatt entered the forfeiture decree Wednesday so some victims can be compensated for their losses.



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