Northwest Arkansas developer Brandon Barber has pleaded guilty to money laundering and bankruptcy fraud.
Barber on Wednesday changed his plea from not guilty during a hearing in Fort Smith.
In 2009, Barber declared bankruptcy and listed $47 million in debt.
Federal prosecutors accused Barber and four co-defendants of a scheme involving a number of northwest Arkansas real estate transactions.
Fort Smith television station KHBS reports Barber pleaded guilty to two counts of money laundering and one count of bankruptcy fraud.
Sentencing will be set later. He could be sentenced to up to 40 years in prison.
Barber was ordered jailed in May after a judge found he violated the terms of his home confinement.