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2nd guilty plea in $100M New York Ponzi scam

Published on NewsOK Modified: May 12, 2014 at 3:58 pm •  Published: May 12, 2014
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CENTRAL ISLIP, N.Y. (AP) — A second New York businessman pleaded guilty for his role in a $100 million Ponzi scheme that helped fund what prosecutors called a failing Hamptons resort.

Adam Manson, 42, of Old Westbury, pleaded guilty in federal court on Long Island Monday to one count of conspiracy to commit securities fraud. The plea came two weeks after Manson's brother-in-law, Brian Callahan, pleaded guilty in the same courthouse to securities 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. Some of the money was used to purchase the Panoramic View, described in court papers as "an unprofitable 117-unit beachfront resort and residence development in Montauk."

Manson, who co-owned the resort on the far eastern tip of Long Island with Callahan, admitted Monday that he lied to an auditor looking into the investment funds, and provided fake documents, bogus promissory notes and doctored balance sheets.

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