Alleged Resort Ponzi Scheme Took in Montauk Fire Department

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Storm clouds loom over the Montauk lighthouse as hurricane Irene makes its way up the East coast on August 27, 2011 in Montauk, New York. At least three people have died in storm-related incidents since Hurricane Irene slammed into the US east coast on Saturday, officials said.
Photo: STEPHEN CHERNIN/AFP/Getty Images

Two brothers-in-law in Montauk charged with running a Ponzi scheme allegedly got into a lot of debt trying to develop the high-end Panoramic View Resort and Residences, then tried to pay it off with  investors' money raised through separate investment funds. Among the alleged victims: The Montauk Fire Department, which paid $600,000 to invest in "mutual funds and other securities," according to The New York Times. Instead of investing the money, Brian Callahan and Adam Mason allegedly used it to pay the debt on the Panoramic View. On one hand, it's the very definition of shitting where you eat. On the other, if that (presumably insured) money pit of a resort caught fire, one imagines nobody would be in too huge a rush to save it. The trick would be letting the fire department know you'd ripped them off before actually getting arrested for doing so, which didn't pan out in this case.