CENTRAL ISLIP, N.Y. (AP) — A New York businessman has admitted his role in a Ponzi scheme that netted nearly $100 million.
Adam Manson pleaded guilty Monday in federal court on Long Island to one count of conspiracy to commit securities fraud.
Manson's brother-in-law, Brian Callahan, pleaded guilty in the same courthouse two weeks ago.
Investors handed the pair about $118 million for investment in mutual funds, hedge funds and other securities. Authorities say the defendants "siphoned off" about $96 million.
Callahan admitted some of the money was spent on a Montauk (MAHN'-tahk) resort called Panoramic View.
Manson, who co-owned the resort, lied to auditors about where that money originated. He was accused of providing fake documents and a doctored balance sheet to an independent auditor.