- 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.

LOAD COMMENTS ()

 

Click to Read More

Click to Hide