An Island Heights, N.J., man told investors he would put their money in life insurance policies, but instead put some of it in his own pockets, cheating dozens of clients out of $6 million.

James Hankins Jr. pleaded guilty in a New Jersey Superior Court Oct. 14 to two counts of money laundering, and one count each of failing to file tax returns and failure to pay taxes on the proceeds of the scheme, according to the Asbury Park Press.

Last March, New Jersey officials filed suit against Hankins and his companies, Hankins Private Client LLC, The Hankins Group and Hankins Life Settlement for alleged violations of the New Jersey Uniform Securities Law. The violations included defrauding investors and acting as a broker-dealer with our registration.

That case was settled, with Hankins and his businesses ordered to pay $7 million in restitution and another $220,000 in civil penalties.

According to prosecutors, Hankings laundered $18 million in a Ponzi scheme, bilking 36 investors, mostly in Ocean and Monmouth counties. Of the $18 million he took from investors to invest in life insurance policies, only $11.7 million was returned, according to the report.

Hankins said he paid the returns on principal so his investors would continue their activity with him, but spent some of the $6 million he stole on a $3.5 million home in Jupiter Beach, Fla., jewelry, trips on private plans and other personal expenses.

In a plea bargain with Hankins, prosecutors said they will ask a judge to sentence Hankins to 20 years in prison with the requirement he serve 10 years before consideration of parole, according to the report. He will also be required to pay restitution to his victims.

Hankins could have faced up to 50 years in prison and more than $1 million in fines outside of the plea deal. He is scheduled for sentencing Dec. 17.