A money manager from Old Westbury was accused of running a scheme in which he lied to 24 investors who gave him $74.9 million from 2005 to 2012, telling them the money would be put into hedge funds.
Brian Raymond Callahan used the money to pay back other investors and for personal expenses such as a “multimillion-dollar cooperative unit on Long Island,” the Securities and Exchange Commission said yesterday in a civil complaint filed in federal court in New York.
“Callahan’s solicitation of investors involved material misrepresentations about the use of their money, the liquidity of their investments and the asset diversification,” the SEC said.
The agency asked for an immediate freeze on his assets. It said Callahan refused to appear for sworn testimony pursuant to a subpoena.
The case was assigned to US District Judge Arthur Spatt in Central Islip. Robert Knuts, a lawyer for Callahan, didn’t immediately return a call seeking comment on the lawsuit.
Raymond Callahan, Old Westbury, money manager, investors, Callahan, Robert Knuts
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