In a strange twist of fate, victims of two scam artist brothers-in-law may be able to recoup their losses. Fooled into investing $96 million into what they believed to be appropriately managed funds, the victims were unwittingly supporting Panoramic View Resort and Residences in Montauk, Long Island. At the time the investors were scammed, the property was languishing and the con artists were attempting to bolster its value by diverting funds to maintain and improve the property.
One of the brothers-in-law, Brian R. Callahan, presented himself as a hedge-fund manager. His sales pitch, which was obviously very successful, convinced 45 potential clients that investing with him would be both wise and lucrative, since the funds he represented were well-known and safe. He further stated that his clients would have the advantage of investing in liquid assets, from which money could be withdrawn, if necessary, with only a few days notice. Ironically, as sometimes happens, unsuspecting clients, who wanted to avoid the risks of the stock market, felt safe investing with Callahan.
Amazingly, the swindlers, so adept at losing large quantities of other people's money, turned out to have a flair for, or just good luck with, real estate. The brothers-in-law themselves did not profit from their investment in Panoramic View, since not long after they bought the resort, the stock market collapsed and they wound up in terrible debt. By two years after their arrest, however, property values had soared once again so that now the Montauk property is extremely valuable.
Obviously, this turn of events is a rarity, but, at this point in the case, the federal government has the opportunity to sell the property at a high enough price to at least partially reimburse the investors who were originally defrauded.
If you have any questions or concerns regarding real estate investments or real estate law in general, please don't hesitate to call on the dedicated and trustworthy attorneys of Ianniello Anderson, serving clients in Albany, Clifton Park, Glens Falls, Saratoga Springs, Troy and the entirety of Northeastern NY for over 40 years. We can be reached at (518) 350.7755.