A Naval Academy grad pleaded guilty Monday to operating a $1.2 million Ponzi scheme in a plea deal that will land him in prison for a minimum of 1 ¹/₂ years.

Honorably discharged veteran Bryan Caisse, 50, solicited more than $1 million from more than 20 friends and former classmates to launch a bogus hedge fund in April 2008, according to prosecutors.

Caisse must pay restitution of approximately $1.4 million.