Prosecutors said that Jonathan Todd Schwartz, 48 agreed to plead guilty to federal charges, reported BBC.
Schwartz has also admitted to USD 6.5 million from the singer and other celebrities.
He was charged with wire fraud and filing a false tax return when he failed to make a statement for the embezzled funds.
Last year, Morissette sued Schwartz in Los Angeles Superior Court, but she later decided to drop the lawsuit.
If convicted, Schwartz faces 23 years of jail time in federal prison. He will appear in US District Court for the case's hearing on February 1.
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