Suspected Broadway con man Mark Hotton of West Islip is negotiating a possible guilty plea in the federal case accusing him of inventing some investors for "Rebecca: The Musical."

During a brief hearing Friday in federal court in Manhattan, Assistant U.S. Attorney Edward Diskant said he and defense attorney Ira London were talking about a "disposition" of the case -- a clear indication that a plea bargain is being considered.

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Hotton, 46, who appeared in court in blue prison garb, said nothing during the hearing before Judge John G. Koeltl.

He smiled and nodded at his oldest son, Michael, who was in the courtroom. London declined to comment after the hearing.

Hotton has been in custody without bail since his arrest in October when federal prosecutors accused him of fabricating investors who were supposed to pump $4.5 million into the production based on the novel by Daphne du Maurier.

The collapse of the alleged scheme put the production into a financial tailspin, although producer Ben Sprecher said he is hopeful the production will take the stage by the end of the year.

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Hotton is also facing additional federal fraud charges in Central Islip.