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by Mike Caswell

Kevin Dills, a California man charged for a scheme to help insiders of several companies secretly unload millions of shares on the market, has agreed to plead guilty. The government claims that Mr. Dills was part of a fraud in which he and another man helped with the illegal sale of over $100-million worth of shares amidst a paid promotion. (All figures are in U.S. dollars.) The scheme was run in part through an unnamed Canadian brokerage.

The guilty plea from Mr. Dills is set out in a letter that prosecutors filed on Friday, Jan. 19, in federal court in Boston. Mr. Dills has agreed to plead guilty to one charge of securities fraud. The charge carries a maximum term of 20 years, but Mr. Dills is not likely to serve anything close to that. Prosecutors have agreed to recommend that he serve 36 months of supervised release, with at least 20 of those months to include house arrest.

Other terms of Mr. Dills's sentence would include forfeiture of $6.1-million, which may be satisfied through his assets. The letter specifically lists two properties in Carlsbad, Calif., and two properties in Hawaii as being subject to forfeiture. (One of the properties is a beachfront location in Maui, while another is a condominium in Waikiki.) The final determination of Mr. Dills's sentence will, of course, be up to the judge.

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