New York Money Manager Raised $75 Million in Fraud, SEC Says
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A money manager from Old Westbury, New York, 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, including those run by Morgan Stanley.
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 U.S. Securities and Exchange Commission said today in a civil complaint filed in federal court in New York.