Wood River Capital Management founder John Whittier pleaded guilty to fleecing $88 million in client money.

Whittier in a New York federal court yesterday copped to a fraud charge. He also owned up to failing to disclose his portfolio data to the SEC. His confession came as part of a plea bargain.

Whittier, 40, could have faced a 20-year prison term. Under the plea bargain, he should get a 15-and-a-half to 19-and-a-half-year sentence. He will also forfeit more than $5.5 million as part of the arrangement. His sentencing is set for October 15.

“I knew at the time that what I was doing was wrong,” he told the court. “I have embarrassed myself and my family.”

Whittier, who began his career as a Donaldson, Lufkin & Jenrette analyst, admitted Wood River amassed an 80% stake in California-based Endwave between 2004 and 2005 without telling the SEC. That omission broke a rule that stated any ownership of 5% or more of a publicly traded security must be filed with the SEC.

He invested 85% of the $127 million Wood River portfolio solely in Endwave rather than diversifying. He also admitted to filing false data for a Wood River hedge fund that held more than a 20% stake in Mediabay.

The case began in 2004 when some Wood River clientele could not redeem their investment. A subsequent probe led to the unraveling of Ketchum, Idaho-based Wood River and a civil action against Whittier.

Wood River became a poster child for potential for fraud in the multi-trillion-dollar hedge fund industry.

Its collapse coincided with the high-profile meltdown of another shady hedge fund company, Bayou Group.