CENTRAL ISLIP, N.Y. (AP) — Two New York businessmen have been freed on bond after their arrests on charges they ran a multimillion-dollar Ponzi scheme.
Federal prosecutors say Brian R. Callahan and his brother-in-law, Adam J. Manson, siphoned investors’ money in order to finance their ownership of an eastern Long Island resort.
Attorneys for the pair entered not guilty pleas on their behalf. Each face charges of wire fraud, securities fraud and conspiracy to commit securities fraud. Callahan is also charged with identity theft.
A federal magistrate has agreed to release Callahan on $2 million bond. Manson has been released on $1 million bond.
Callahan’s attorney declined to comment. Manson’s attorney says his client will fight the charges.