Court records show Jamie Graham pleaded guilty to one count of mail fraud in U.S. District Court in Roanoke.
Graham, an ex-employee for the now defunct Breakell construction company, faced a 15-count indictment last October.
In court papers, federal prosecutors accused him of stealing $2 million from Breakell.
The company closed not long after the indictments were made public.
The indictments accused Graham of moving construction supplies meant for Breakell customers here in the Roanoke Valley across state lines to North Carolina.
Investigators believe he used the supplies to improve his home and the homes of his friends there, according to the indictments.
Graham will be sentenced at a later date.
Court records show he scored an 11 on federal sentencing guidelines.
Prosecutors said they will argue Graham stole anywhere from $28,000 to $1 million, meaning he could face between 18 and 71 months in federal prison.