Ann Marsh |
The
The
The investment advisor,
“This is not a situation where somebody raised a bunch of money and spent it all,” Robert Knuts of the
Knuts said that “monies were invested in various assets and [Callahan] hopes investors will be paid back in full.”
Callahan did not respond to a request for comment.
Callahan is accused of telling some of the two dozen investors in the offshore funds that their money would be placed in liquid assets held in hedge funds but, instead, diverting those funds to his brother-in-law’s beach resort project that was facing foreclosure. In return for those investments, the
The
In a specific example, the SEC’s suit says that, in 2008, Callahan “lured” a
“Callahan misled investors in his funds with false promises, and he enriched himself at their expense when he diverted fund assets for his personal use and pocketed inflated management fees,” said
Ann Marsh writes for Financial Planning.
Copyright: | (c) 2012 Financial Planning. All rights Reserved. |
Source: | Source Media, Inc. |
Wordcount: | 386 |
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