BOOTHBAY HARBOR — A Boothbay Harbor man was arrested Wednesday by federal law enforcement authorities and charged with defrauding multiple investors out of approximately $1 million.

Garrett L. “Denny” Denniston, 62, who has addresses in Boothbay Harbor and Sandy Hook, Conn., was taken into custody at his Maine residence, according to a press release from David B. Fein, U.S. attorney for the District of Connecticut, and the Federal Bureau of Investigation. Denniston, who appeared Wednesday in federal court in Portland, is being detained pending another hearing on Monday.

Denniston allegedly ran an investment business specializing in mergers and acquisitions and promised investors guaranteed profits. Through a company he called ConsensusOne, LLC and other Consensus business, Denniston 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.

Denniston allegedly told the investors that their money would be used to purchase stock options or promissory notes at a substantial discount to the value of the stock on the date of conversion. Denniston told the investors that the companies in question were on the verge of being sold or had already been sold on an accelerated schedule. He also said the investments, which he made available through what he called a “friends and family” deal, were refundable and that his company or he himself guaranteed the safety of the money, according to the Connecticut U.S. attorney.

“I urge the investing public to view with suspicion promises of guaranteed returns,” said Fein in a written statement. “I commend the FBI for shutting down this alleged scheme and I thank the U.S. Attorney’s Office for the District of Maine for their invaluable assistance. The investigation is ongoing and I encourage any potential victims or anyone with information related to this scheme to contact law enforcement.”

Anyone with information about the case is urged to contact FBI Special Agent David J. Ford at 203-382-6645.

Denniston allegedly spent a “substantial portion” of the money on personal expenses rather than investing it on behalf of his investors, according to Fein. Denniston is charged with wire fraud, which could result in a sentence of up to 20 years in prison if he is convicted.

The case is being investigated by the FBI and prosecuted by Special Assistant U.S. Attorney Kerry L. Quinn of Connecticut with assistance from the U.S. Attorney’s Office for the District of Maine.

Denniston’s arrest was part of efforts by the Financial Fraud Enforcement Task Force, which was created by the Obama Administration in November 2009. The task force includes 20 federal agencies and 94 U.S. attorneys’ offices. According to Fein’s press release, it represents the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled.