An upstate New York businessman has pleaded guilty to federal charges in connection with operating a Ponzi scheme that defrauded hundreds of investors of more than $50 million.

The defendant admitted to the charges in federal court, though specific details about the sentencing have not been disclosed. The scheme involved taking money from new investors to pay returns to earlier investors, a classic structure of Ponzi fraud operations.

According to court documents, the businessman solicited investments from hundreds of individuals over an extended period. The fraud caused significant financial losses to victims who believed they were making legitimate investments.

Ponzi schemes typically collapse when operators can no longer recruit enough new investors to pay promised returns to existing ones. Federal authorities investigated the case before bringing charges against the defendant.

The guilty plea represents a resolution to the criminal case, though victims may still pursue civil remedies to recover their losses through separate legal proceedings.