The Honolulu FBI says former fugitive Peter Heckmann pleaded guilty Thursday morning to wire fraud for his operation of a Ponzi scheme on Kauai.
Wire fraud has a statutory maximum of 20 years in prison and a potential fine of $250,000.
Heckmann acknowledged in court that the victim losses in this case exceeded $1 million and that his scheme involved paying older investors with money from new investors in a scheme to defraud the victims.
Heckmann will remain in custody at the Honolulu Federal Detention Center awaiting his sentencing on July 25.
"We hope that today's guilty plea will serve as one more step towards closure for the victims in this case," said FBI Special Agent Tom Simon. "This case should serve as a reminder to the people of Hawaii to investigate before you invest."