HONOLULU -- A Kaua'i man accused of swindling $16 million in a Ponzi scheme pleaded not guilty in federal court Monday.

David Ruskjer is accused of taking the money from 140 clients in an investment loan program.

Federal prosecutors said Ruskjer only invested about half the money and spent thousands on a car, motorcycle and a Kaua'i condo.

"People always got their money back if they wanted it. They got interest payments each month. They loaned him money they didn't care what he did with it as long as they got paid and they did," said Michael Green, Ruskjer's attorney.

Green said the state investigated his client's dealings and gave him a clean bill of health.

On Monday, judge Leslie Kobayashi ordered Ruskjer to be released on $50,000 bail. He will have to live with his mother in Florida and be subject to curfews and GPS monitoring.

Trial is set to start in January 2010.