SACRAMENTO, Calif. -- San Joaquin County Sheriff T. Baxter Dunn has pleaded guilty to a federal fraud charge and agreed to resign his post.

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Dunn, 57, told a federal judge in Sacramento Thursday afternoon that he was profoundly sorry for his conduct.

"The last year of my life has been the most difficult time I have ever endured," Dunn said, according to a press release from the San Joaquin County Sheriff's Department. "I have always accepted responsibility for my conduct in office, and this is no exception. I wish to apologize to the citizens of San Joaquin County and to the many good, hardworking deputy sheriffs and employees of the San Joaquin County Sheriff's department for any suffering I have caused and the unfortunate distraction this matter has generated."

Prosecutors say Dunn and other public officials had a secret involvement in a company that wanted to build a power plant at the Port of Stockton.

Dunn faces up to 18 months in prison, but that sentence could be reduced because he has agreed to help federal investigators in the ongoing investigation.

Dunn agreed to resign his post within 30 days.

"I will retire from office to avoid placing any further hardships on my office or in any way frustrating the good work of my dedicated deputies and employees. I would ask for everyone's understanding and your prayers as I continue to confront the many challenges ahead," Dunn said.

Because of his retirement, Dunn will be able to keep his full pension.

Related to the case, Lynn G. Bedford, 67, of Tracy, a former San Joaquin County Supervisor, also pleaded guilty to making false statements to federal agents, according a Department of Justice press release

Defendant N. Allen Sawyer, 36, of Stockton, the former Executive Director of the Governor's Office of Criminal Justice Planning, pleaded guilty on Tuesday to one count of honest services mail fraud, and is also cooperating with the Government, according to the release.

The last remaining defendants in the case are Monte D. McFall, 58, of Lathrop, and Bedford's former legislative assistant, J. Tyler Reves, 35, formerly of Stockton. Their trial is scheduled to commence January 26.