A Morristown man pleaded guilty to conspiring to defraud small businesses through phony debt relief services, federal prosecutors said.

Mark Csantaveri, 53, pleaded guilty May 4 in federal court to conspiracy to commit wire fraud.

Prosecutors say Csantaveri and co-conspirators operated businesses that claimed to provide debt relief services for small businesses. Authorities say victims were induced to make regular payments after being told the money would be held while favorable settlements were negotiated with creditors.

Instead, prosecutors say the money was misappropriated for personal use, including more than $1 million in gambling expenses.

Federal officials say Csantaveri’s businesses took in about $3.7 million from small businesses and transferred about $3 million to accounts controlled by Csantaveri and his co-conspirators.

“This defendant didn’t just break the law—he exploited the financial vulnerability of small business owners who were trying to stay afloat and keep their doors open. By peddling sham debt-relief services and diverting millions for personal use, he turned trust into a weapon and hardship into profit," U.S. Attorney Robert Frazer said.

Sentencing is scheduled for Sept. 29.