Brian Callahan, Adam Manson plead not guilty to running $96M Ponzi scheme
CENTRAL ISLIP - The two men accused of running a Ponzi scheme to buy a waterfront resort pleaded not guilty today.
Brian Callahan was released on $2 million bond secured by $500,000 equity in three homes owned by his sister and father. Adam Manson was released on $1 million bond secured by $500,000 in equity in his father's home.
Both Callahan and Manson had to agree on several conditions, including repatriation of any foreign assets. Callahan is also required to have a mental health evaluation.
The FBI says the brothers-in-law siphoned more than $96 million and used the money to buy and improve the Panoramic View Resort in Montauk.
The Securities and Exchange Commission sued Manson, Callahan and Callahan's wife for $74 million in March 2012. The SEC amended the number to $90 million in July.
They are due back in court on Sept. 13.