Former Chattanooga auto dealer Joe Prebul pleaded guilty in federal court in New York City Monday morning, but only to a misdemeanor charge.
He entered a guilty plea to larceny under $1,000.
Sentencing is March 5 at 3 p.m. before Judge William Pauley III. It carries up to one year in prison and a fine up to $1,000.
Attorney Tom Ray of Chattanooga said the defense will ask that Prebul not have to do any jail time.
He is ordered to repay his brother-in-law, Danny Bensusan, $6,783,082.82.
Prebul had been charged with 11 counts of wire fraud after his brother-in-law claimed he misappropriated money he sent to Chattanooga to be invested.
Attorney Ray said the defense and prosecutors worked out the settlement in talks that began Friday night and continued through Sunday.
The trial had been set to begin this morning with Bensusan, a New York music mogul, set to be the first witness.
Attorney Ray said it was "a reasonable resolution for a case that is contentious for everyone involved."