Troy David Stratos, 45, faces 14 charges of fraud, money laundering and obstructing justice. Stratos was arrested Tuesday and made his first appearance in Los Angeles federal court.
Stratos is accused of persuading Nicole Murphy to invest the proceeds of her divorce overseas, where they would earn a high rate of return.
However, t prosecutors say he never invested the money and spent it on himself.
Court records show Nicole Murphy has filed two lawsuits against Stratos.
She filed for divorce from actor-comedian Eddie Murphy in August 2005.
The Associated Press contributed to this report.