The founder and president of a Farmingdale based corporate financing company is facing 15 months in prison for defrauding an Illinois man.

Michael Peniston, 50 of Famingdale, previously plead guilty before a US District Judge on one count of wire fraud. Peniston admitted to using his company, Venture Development Associates Inc., to create an agreement that would falsley represent that Peniston would use the victims money to aquire a "bank instrument" valued at 500,000,000 Euros.

According to the US Attorney's Office, the agreement falsely said Peniston would use the bank instrument to purchase "Medium Term Notes" the he would sell at a profit, which would be split with the investor.

The money was used on personal expenditures instead.