Former Investment Advisor Pleads Guilty in Ponzi Scheme

Posted on May 15th, 2014 at 9:00 AM

From the Desk of Jim Eccleston at Eccleston Law Offices:

Brian Raymond Callahan, aformer investment advisor from Westbury, NY, has pleaded guilty in running a $96 million Ponzi scheme that centered upon the promotion of a Long Island resort project.

From 2006 to 2012, Callahan and his business partner and brother-in-law Adam Judd Manson convinced around 45 investors to sign on with Horizon Global Advisor, a hedge fund owned by Callahan. Then Callahan channeled about $33 million of the investors’ money back and forth between the fund over Manson, who was attempting to prop up Panoramic View, a failing resort venture in Montauk.

Meanwhile, the two distributed fictitious interest in Horizon Global clients from their own principal in order to convey the appearance of a “safe” and viable investment. Sham promissory notes, account statements and other forged documents were used to sustain the scheme, which fueled shopping sprees for luxury cars and the purchase of upscale mansions.

Callahan used Diversified Global Investments, L.P., The Masters Fund, L.P., Fiduciary Select Income Fund, L.P., Horizon Millenium Investments, L.P., and Pangaea Offshore High-Yield Portfolio, LLC under the framework of Horizon to defraud investors.

In addition, account fees for Horizon Global’s dwindling assets under management were inflated to ridiculous proportions – up to 800% – as client funds were squandered. Callahan has agreed to pay $67 million in restitution.

The attorneys of Eccleston Law Offices represent investors and advisers nationwide in securities and employment matters. Our attorneys draw on a combined experience of nearly 50 years in delivering the highest quality legal services.

Related Attorneys: James J. Eccleston


Return to Archive



I have the best legal firm in the country to defend me. Awesome job!

Cindy C.


October 27, 2021
Former LPL Advisor Suspended For Completing 22 Trades Absent Client Consent

The Financial Industry Regulatory Authority (FINRA) has suspended and fined a former LPL advisor who allegedly completed 22 trades on behalf of a client without obtaining written consent. FINRA has issued a $5,000 fine and has suspended Michael Hartlett for 10 days.

October 26, 2021
Former Advisor Fails To Reverse Bar After Alleged $1 Million Theft From RBC

A former RBC Wealth Management advisor lost his bid to reverse an industry bar, according to an appellate decision issued by the Financial Industry Regulatory Authority (FINRA).

October 25, 2021
Firms Walk Thin Regulatory Line In Referring Self-Directed Clients To Advisors

While online trading platforms have surged in popularity during the pandemic, brokerage firms view self-directed investors as a source of new clients.