FBI agents arrested a Boothbay Harbor man at his Townsend Avenue home in the early morning on September 19.

Garrett “Denny” Denniston, 62, formerly of Sandy Hook, Conn., is accused of running what appears to be a Ponzi scheme, defrauding five long-time Connecticut friends of more than $900,000.

In an affidavit, FBI Special Agent David Ford said that between 2006 and 2012 more than $3 million was wired or paid to Denniston’s bank accounts by numerous entities as part of an alleged investment scheme through ConsensusOne, LLC.

In excerpts of emails included in the affidavit, Denniston promised substantial returns and guaranteed initial investments would not be lost. The alleged victims named in the FBI affidavit — two married couples and an individual — had known Denniston for 25–30 years and trusted him with multiple investments. Their losses ranged from $207,000 to $400,000.

Ford said that Denniston gave some of the money to family and spent some on airfare, hotels, restaurants, country club memberships, mortgage and rent payments, remodeling costs and other personal expenses.

Denniston is charged with wire fraud, which carries a maximum prison sentence of 20 years. Denniston appeared before a Federal Court judge and is being detained without bail until a hearing at the United States District Court at 156 Federal St. in Portland on Monday, Sept. 24 at 2 p.m.

Click here for the official press release from the U.S. Attorney's office.