Denniston, according to court records ran a company called ConsensusOne and attracted investors from approximately 2005 to 2012, claiming to have special investment options on merging companies under a friends and family deal. But the stocks were non existent, the government said.
As in other cases, there were faked documents and money from one investor was used to pay others.
Denniston apparently blew much of the money on luxuries and having fun, using some of the money for gifts to family members, airfare, hotels, restaurants, country club memberships, golf and ski outings, mortgage and rent payments, cable and telephone bills, furniture, home renovation costs, and other personal living expenses, the government said.
The former Newtown resident is scheduled to be sentenced on June 11 and he faces a maximum prison term of 20 years.