CENTRAL ISLIP, N.Y. – A suburban New York investment fund manager has admitted running a Ponzi scheme that netted nearly $100 million.
Brian Callahan pleaded guilty Tuesday in U.S. District Court in Central Islip (EYE'-slihp) to securities fraud and wire fraud.
He could face up to 20 years in prison on each count. He'll be sentenced Aug. 8.
Callahan was charged in a 2013 indictment with raising more than $118 million from at least 40 investors between 2006 and 2012. He promised the money would be invested, but instead Callahan siphoned off about $96 million.
He used some of the money to buy and operate a Montauk (MAHN'-tahk) resort on eastern Long Island.
Among the victims were a Maryland investor who lost $11 million. The Montauk volunteer fire department lost $600,000.