CENTRAL ISLIP, N.Y. – An investment fund manager who admitted stealing nearly $100 million of investors' money in a Ponzi scheme to fund his interest in a Hamptons resort has been sentenced to 12 years in prison.
Brian Callahan was sentenced Friday in U.S. District Court in Central Islip. He pleaded guilty to securities and wire fraud in 2014.
Prosecutors say Callahan was raising more than $118 million from investors and "siphoned off" about $96 million.
Some of the money was used to purchase the Panoramic View, which was described as an unprofitable beachfront resort and residence development in Montauk, New York.
Among the victims of Callahan's Ponzi scheme was the Montauk volunteer fire department.
Prosecutors also say he bought luxury homes and cars, paid large credit card bills and golf club dues.