A Massachusetts hedge fund manager has pleaded guilty to running a $9 million Ponzi scheme.

Michael Regan admitted he defrauded some 70 investors in his River Stream Fund, which collapsed last year. According to federal prosecutors in Brooklyn, N.Y., Regan told investors River Stream had about $18 million in assets, but in fact had just $101,600 in its accounts. He also allegedly claimed returns of about 20% annually since 2001, but rarely enjoyed more than minimal trading success while paying out $9 million in phony profits and returned capital to investors.

Regan “earned” more than $2.5 million in fees from River Stream.

In addition to pleading guilty to the criminal charges, Regan has settled civil charges filed by the Securities and Exchange Commission, agreeing to pay more than $8.7 million. He faces up to 20 years in prison and $5 million in penalties at his sentencing, which has not been scheduled. Regan was released on bail.

Regan was charged last year by Massachusetts Secretary of the Commonwealth William Galvin with improperly soliciting unqualified investors. At the time, Galvin said that his investigation had revealed that River Stream had just a fraction of the assets it claimed.