PORTLAND, Maine — A Boothbay Harbor man arrested last week by federal law enforcement authorities and charged with defrauding multiple investors out of approximately $1 million was denied bail Monday after a hearing in U.S. District Court.
Garrett L. “Denny” Denniston, 62, who lives in Boothbay Harbor and is formerly of Sandy Hook, Conn., was taken into custody Sept. 19 at his Maine residence, according to a press release issued Monday by David B. Fein, U.S. attorney for the District of Connecticut.
Denniston is expected to be returned to Connecticut. A date for his first appearance in federal court in New Haven has not been set.
He allegedly ran an investment business specializing in mergers and acquisitions and promised investors guaranteed profits. Through a company he called ConsensusOne LLC and another business, Denniston allegedly defrauded two victims out of a total of $300,000, another two victims out of a total of $400,000 and a fifth victim out of more than $200,000.
According to an affidavit written by Special Agent David J. Ford of the FBI, Denniston has had personal relationships with all of his alleged victims for at least 25 years. All of the victims reside in Connecticut and all of them allegedly were told by Denniston over the course of years that their money would be returned, with profits. Financial records allegedly show that Denniston promptly used some of his victims’ investments to pay personal expenses, including an expensive remodeling of his Boothbay Harbor home, and also gave gifts to his children.
Because he used interstate email accounts to make the deals, Denniston is charged with wire fraud, which could result in a sentence of up to 20 years in prison if he is convicted.
BDN writer Christopher Cousins contributed to this report.