A New Jersey money manager, who worked as a lawyer at the SEC in the 1980s, has admitted to helping disgraced lawyer Marc Dreier carry out a scheme to attempt to sell $44.7 million in fake promissory notes by impersonating people at a hedge fund and a pension plan.

Robert L. Miller, 52, pleaded guilty to conspiracy to commit securities fraud and wire fraud, as well as securities fraud.

Miller admitted that he was paid $100,000 by Dreier, once managing partner of Dreier LLP, in November 2008, to impersonate someone at a Canadian pension plan on the telephone. A few days later he also impersonated a representative of an Icelandic hedge fund by phone, in order to sell about $44.7 million in fictitious promissory notes.

"In summary, I agreed with Marc Dreier that I would make misrepresentations to two hedge funds to induce them to buy notes," Miller said at a hearing before U.S. Magistrate Judge Ronald L. Ellis in Manhattan. "I knew what I was doing was wrong and I deeply regret what I did."

Miller worked as a staff attorney in the SEC's Enforcement Division from 1983 to 1986 and worked as an analyst and money manager in the securities industry from 1987 to 2008, according to court documents.

Miller, who is currently unemployed, and Dreier, managed an investment fund together between 1999 and 2008, according to court documents.

Dreier was arrested on Dec. 2 in Toronto after he attempted to impersonate a person at Canada's Ontario Teachers' Pension Plan in order to sell fake promissory notes. He was released on bail and was arrested on fraud charges in the U.S. when he returned to New York a few days later, according to the Wall Street Journal.

Dreier was sentenced to 20 years in prison in July after pleading guilty to conspiracy, securities fraud and other charges.

Miller allegedly became involved in the scheme in mid-November 2008--a time when Dreier has said he was growing increasingly desperate for cash to cover his law firm's expenses and repay prior fake promissory notes he had sold.

Miller, who is cooperating with prosecutors, faces as many as 20 years in prison. He agreed to forfeit $100,000 as part of his plea agreement with the government.