A former co-owner of the Panoramic View Resort & Residences who federal officials said perpetrated a $96 million fraud – one of Long Island’s largest Ponzi schemes – was sentenced Friday in federal court in Central Islip to 12 years in prison.
Brian R. Callahan, an investment adviser from Old Westbury, apologized to the victims he defrauded.
Callahan pleaded guilty on April 29, 2014, securities and wire fraud. He is expected to surrender to authorities on Nov. 27 to begin serving his time.
Callahan was also ordered to pay more than $67 million in restitution.
According to the indictment, Callahan raised $118 million from 40 investors between December 2006 and February 2012, saying he would place their money in the four different funds he operated that supposedly invested only in mutual and hedge funds and securities such as stocks and bonds paying high dividends.
In 2007, Callahan and his brother-in-law, Adam Mason. also purchased the Panoramic View, hoping to sell off the units to individual buyers as co-ops, according to the indictment.
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