Former Boothbay Harbor resident Garrett “Denny” Denniston pleaded guilty February 13 to one count of wire fraud from his operation of a multi-million dollar Ponzi scheme.

Denniston, 62, pleaded guilty to United States District Judge Janet Bond Arterton in New Haven, Conn.

Court documents showed that Denniston, through his company ConsensusOne, defrauded more than 50 individuals of more than $2.5 million. The investments ranged from a few thousand dollars to approximately $500,000.

Denniston was arrested September 19 in Boothbay Harbor.

From 2005 to 2012 Denniston reportedly presented himself as the successful proprietor of ConsensusOne and told potential investors he ran a successful company that specialized in mergers and acquisitions. He was able to convince investors to buy into phony stock options or other spurious investments.

Denniston reportedly told his investors their money was being invested into one of the ConsensusOne-owned companies, which didn't exist. He also guaranteed returns on investments and stated that the investments were risk-free.

Instead, court documents showed that Denniston used his clients' money for personal and business expenses that were unauthorized. He used money for gifts to family members and spent a large portion on airfare, hotels, restaurants, country club memberships, golf and ski vacations, mortgage and rent payments, cable and telephone bills, furniture, home renovation costs and other personal expenses.

The court found that Denniston was able to cover-up his activities through preparing fake legal documents with forged signatures and diverted money from one fund to repay other investors.

U.S. Attorney for the District of Connecticut David Fein said in a release that what Denniston offered his clients turned out to be too good to be true.

“This defendant operated an investment fraud scheme by representing to investors that he ran a successful investment business and could offer more them a special 'friends and family' deal investing in companies for a guaranteed return of their investment plus a high rate of interest,” Fein said. “I commend the FBI and the Greenwich Police Department for shutting down this scheme, and I urge the investing public to be extremely skeptical of any promises of risk-free investments and guaranteed returns.”

Sentencing will be June 11 and Denniston could face the maximum sentence of 20 years in prison.

Ben Bulkeley can be reached at 207-633-4620 or bbulkeley@boothbayregister.com. Follow him Twitter: @BBRegisterBen.