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


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Thank You from the bottom of our hearts for all you have done for us. When we realized this was a very bad investment - we did not know where to turn for help. Then we received your name. When we called you - you were so kind to us and then agreed to help us. For this we are so very grateful. The world would be a much nicer place if there were more people like the two of you in it. We will always remember all the help and kindness you have shown us. Thank you so very very much for everything.

Wayne and Judy S.


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