Police see link to similar incidents. A .gov website belongs to an official government organization in the United States. Recently, Ponzitracker.com compiled an extensive collection of statistics from Ponzi schemes during the six-year period from 2008 to 2013, and the results were staggering. A hearing has been set for Jan. 15 to sort out the discrepancy. He falsely claimed that his companies did tens of millions of dollars in business with federal agencies every year, most notably the Department of Veterans Affairs. In total, nearly 5,000 investors invested in Madoffs scheme. Based on the false representations, Bridge Bank authorized a line of credit worth $4.5 million. (ECF No. . Federal prosecutors said that, from 2002 to 2014, Wannakuwatte fraudulently raised $230 million from nearly 200 investors for his companies International Manufacturing Group and RelyAid Global. Based on these representations, IMG and RelyAid raised at least $125 million from numerous investors. . This ruling concludes the federal criminal prosecution; civil proceedings in the United States Bankruptcy Court are ongoing. On Thursday, a federal judge ordered Deepal Wannakuwatte, 64, of Sacramento, to pay $108,199,425 in restitution to victims of his long-running fraud scheme, United States Attorney Benjamin B. Wagner announced today. In sentencing Wannakuwatte, Judge Nunley told the defendant, You embody true evil. Authorities also filed criminal charges against financial juggernaut JPMorgan Chase (JPM), accusing the bank of turning a blind eye to Madoffs scheme while serving as his primary banker. Real-time updates and all local stories you want right in the palm of your hand. His partner in the Capitals, a Fair Oaks man named Ramey Osborne, wound up loaning Wannakuwatte about $456,000, according to bankruptcy court records. In early February, he announced he was moving the team to Las Vegas because he couldnt secure a permanent home stadium for the Capitals in Sacramento. - Dont believe everything youre told. See https://www.cdc.gov/coronavirus/2019-ncov/need-extra-precautions/groups-at-higher-risk.html (listing pulmonary hypertension but not essential (primary) hypertension and indicating those with hypertension should manage their blood pressure by taking medication as directed) (last visited July 22, 2020). Sacramento, CA. In truth, the government contracts were worth only $25,000. However, the truth was that neither the meat nor the oil from emus was valuable. After the previous owner of the Capitals went bankrupt in 2011 and the team was in jeopardy, Wannakuwatte stepped in and kept the team alive. And in 2012, Bank of Internet issued a $1.26 million mortgage to Deepal Wannakuwatte, a Sacramento businessman who received a 20-year prison sentence last year for operating, for more than 10 . Cal. . Guru was arrested by Indian authorities 2012 and charged with conspiracy and cheating after the scheme unraveled. Betsy Wannakuwatte, the wife of Deepal Wannakuwatte, was served by personal service on the same date. He will also surrender $8 million to $12 million worth of federal income tax refunds. . To date, Madoffs victims have recovered nearly 50% of their losses through the trustees efforts, and this number is expected to increase. Defendant cites the conditions of his confinement at USP Lompoc as an additional factor in his vulnerability. 135.) On November 13, 2014, this Court sentenced Defendant to a 240-month term of imprisonment followed by a 36-month term of supervised release. Red flags, copy-with-cite, case summaries, annotated statutes and more. He purchased the Capitols with his ill-gotten gains and moved them to Las Vegas in February 2014. The case against Deepal Wannakuwatte was already one for the books: a successful immigrant businessman, owner of a professional tennis team, admitting he had perpetrated one of the largest Ponzi. Police see link to similar incidents. It isnt known how much the company is worth. [3] See also [ edit] Tennis portal For example, a $257 invoice was modified to create a $12 million invoice. While Madoff initially maintained that he acted alone, it became apparent that the sheer size of his scheme meant he alone could not have kept the scheme going for so long. Under his original indictment, Wannakuwatte could have received up to 90 years in prison. The scheme, which spanned decades, ultimately caused at least $17 billion in losses to thousands of investors. According to the Bee, Wannakuwatte, 63, had been under investigation by several federal agencies, including Veterans Affairs, the FBI, the Internal Revenue Service and the Federal Deposit. Assistant United States Attorneys Michael Beckwith and Kevin Khasigian are prosecuting the case. Shortly before Wannakuwatte was arrested, the team announced it was moving to Las Vegas. Deepal Wannakuwatte, owner of the Las Vegas Neon, was arrested February 20 in Sacramento, Calif., on federal fraud charges, and the Neon folded on Wednesday, according to league officials at. The victims will never be whole again from the fraud totaling more than $230 million, but rest assured they will have the comfort of knowing Wannakuwatte will be incarcerated for many years to come. In his highprofile pursuit for prestige and financial gain, Wannakuwatte had no regard for public trust and the financial stability of his victims, said Special Agent in Charge Monica M. Miller of the Sacramento Division of the Federal Bureau of Investigation. (Id. 3582(c)(1)(A). Next: Online Auction Revealed to Be $500 Million Ponzi Scheme. 3582(c)(1)(A) is only available. Official websites use .gov The investigation determined that Wannakuwatte told his investors that two of his companies were involved in the international sale of latex gloves and that it did business with government agencies, in particular the Department of Veterans Affairs (VA). Using a series of talking points provided by Wannakuwatte, the IMG employee told the Bridge Bank representative that there were more than 60 invoices showing a total of more than $25.8 million in payments owed by the VA to IMG. Get FBI email alerts Viking advertised itself as operating a high-yield, low-risk investment strategy that offered above-average returns by making secured loans to borrowers at inflated interest rates. (David Becker/Las Vegas Review-Journal File) | Las Vegas Review-Journal. Wannakuwatte took over the Capitals in 2012 after previous owner Bob Cook filed for bankruptcy protection. Daniel Parrili, John Lauer, and Christopher Anderson met in a Wisconsin prison where, unsurprisingly, they were currently serving time for fraud-related charges. The loss has devastated him, according to a letter from his wife, Jayna. Prosecutors have said the net loss to investors came to $109 million. According to prosecutors, Wannakuwatte duped individual investors and professional bankers alike into pouring $150 million into the company over the past decade or so. Lock The Court is mindful that people with certain medical conditions, including hypertension, can be more vulnerable to COVID-19. 3582(c)(1)(A) and U.S.S.G. As part of his plea agreement, Wannakuwatte will file for bankruptcy protection and forfeit more than $330,000 in bank accounts to the government, along with 16 pieces of property, including his South Land Park house and vacation homes in Hawaii, Oregon and Sonoma County. In addition to the retail business, the company also promised its affiliates hefty returns for recruiting new participants and placing free advertisements on other sites. Put another way, a Ponzi scheme was uncovered, on average, once every four days from 2008 to 2013. In opposition, the Government argues the Court should deny Defendant's motion because Defendant failed to demonstrate extraordinary and compelling reasons to warrant release, he is a continuing danger to the community, and the 18 U.S.C. The total value of the properties, vehicles, business interests, and bank accounts is estimated to be at least $3.5 million. And while his victims suffered, Wannakuwatte purchased luxury homes, vehicles, airplanes, and even a professional tennis team. Additionally, Hibbert and his wife diverted investor funds for their own personal use, including the purchase of luxury automobiles and real estate. ) or https:// means youve safely connected to the .gov website. Share on Facebook Facebook 135. Another submitted a poem that called Wannakuwatte a miserable soul.. But the hourlong hearing in U.S. District Court didnt lack for drama. According to court documents, from 2002 to 2014, Wannakuwatte convinced nearly 200 victims, including individuals, corporate entities, and financial institutions, to invest in a number of business opportunities by misrepresenting the financial worth of himself and his companies. The exposure was gigantic, Heller said. Assistant United States Attorneys Michael Beckwith and Kevin Khasigian are prosecuting the case. WASHINGTONDeepal Wannakuwatte, 63, of Sacramento, California, was sentenced today to 20 years in prison for a long-running fraud scheme, announced United States Attorney Benjamin B. Wagner, Special Agent in Charge Monica M. Miller of the FBIs Sacramento Field Office, Acting Special Agent in Charge Thomas McMahon for the IRS-Criminal Investigation, and Special Agent in Charge Wade V. Walters of the Federal Deposit Insurance Corporation Office of Inspector General. U.S. Attorney's Office, Eastern District of California, Domestic Violence, Child Exploitation, and Human Trafficking Prevention, Former Owner Of Sacramento Capitals Tennis Team Sentenced To 20 Years In Prison For Fraud Scheme Exceeding $100Million In Losses, Mexican National Residing in Bakersfield Sentenced to 18 Months in Prison for Illegal Cockfighting in Violation of the Animal Welfare Act, Laser Strikes on Kern County Sheriff Helicopter Lead to Prison Sentence, Federal Agent Pleads Guilty to Making False Statements in Connection with a Sexual Relationship with a Victim Witness. The fraud has aged him and I pray daily he will survive.. Based on the record before it, the Court cannot say that the past prevalence of the disease at USP Lompoc puts Defendant at great and particularized risk. A .gov website belongs to an official government organization in the United States. See 18 U.S.C. A locked padlock Wannakuwatte developed false documents and relationships to prove his bona fides to investors, including false tax returns overstating income, false corporate documents, and a fake VA representative. Deepal Wannakuwatte, 63, was arrested in February 2014 and indicted on federal fraud charges, including mail fraud and wire fraud, which each carry maximum 20-year prison terms. From Bernie Madoff to bogus emu investments, these 10 Ponzi schemes turned heads with their big sums and odd natures. Defendant made a request to the warden on April 23, 2020. Defendant also fails to specify the nature of his serious lung disorders or the cause of his severely compromised immune system. Wagner said losses to investors totaled around $100 million. Little if any legitimate investing actually takes place, and the Ponzi scheme depends on the continuous flow of funds from new investors to meet obligations to existing investors. Secure .gov websites use HTTPS Although prosecutors have said Wannakuwatte lured investors and lenders into giving him around $150 million, Wagner pegged the actual net loss at around $100 million. For the reasons set forth below, the Court DENIES Defendant's motion. Wannakuwatte used this to fund other business ventures, make adequate payments to his investors and lenders to keep the scam going, and line his own pockets. Among other things, Wannakuwatte was ordered to turn over a $3 million private plane that had been pledged as collateral.. Investors are promised above-average returns that generally carry little risk. An official website of the United States government. However, the payment of these returns is made not from legitimate business activities, but rather from incoming funds from new investors. These claims were not true but were made in order to appear more credit worthy. c. Petitioners Maneggie and Henley-Curtis are informed and believe and based thereon allege that on or about July 29, 2011, acting on behalf of the partnership and in furtherance of their duties and responsibilities under the MOU, defendant Deepal . emailStay Connected (ECF No. WASHINGTONDeepal Wannakuwatte, 63, of Sacramento, California, was sentenced today to 20 years in prison for a long-running fraud scheme, announced United States Attorney Benjamin B. Wagner,. It didnt. Take the time to do your own research on the investments potentialand on the person making the offer. With time off for good behavior, he could be out of prison by the time hes 79 or 80, giving him the opportunity to see his grandchildren.. Copyright The lesson learned from a case like this? He shows up at a funeral populated by people he was stealing from, Hooper said. Rocco was formerly the president of the Dix Hills Soccer Club, where he enjoyed exclusive access to company bank accounts. Dressed in a grubby jail-issued orange jumpsuit, Wannakuwatte, 63, pleaded guilty Thursday to a single count of wire fraud in U.S. District Court. Defendant did not file a reply. Because more than 30 days have elapsed since April 23, 2020, Defendant has met the exhaustion requirement. Compare with Westlaw Troy L. Nunley United States District Judge ORDER This matter is before the Court on Defendant Deepal Wannakuwatte's ("Defendant") Motion for Compassionate Release Pursuant to 18 U.S.C. The defendant offered up an apology, read aloud by his lawyer, and accepted his prison sentence in silence. GDC Stock Alert: Why Is GD Culture Group Up 700% Today? For individual investors, Wanakuwatte had encouraged them to obtain their investment money from the equity in their homes or from their retirement accountsas a result, many lost everything. While the forfeitures will go toward restitution, the remainder of the roughly $105,000,000 will be paid back at a minimum rate of a mere $25.00 per quarter during the course of his incarceration. A thief, a serial thief.. Persaud was a registered representative with a Florida broker-dealer. Perhaps fittingly, Madoffs 150-year sentence ranks as the longest Ponzi prison sentence. 95814, Telephone:(916) 554-2700 Copyright 2015, American Bar Association. His firm, Madoff Investment Securities LLC, offered consistent annual returns averaging 10% through a purported strategy that combined the purchase of blue-chip equities and corresponding options. watch now. Contrary to his representations, Wannakuwatte used much of the money he obtained to pay himself and his family, make lulling payments to participants in his fraudulent investment schemes, and pay outstanding debts unrelated to his false representations. We thank the IRS Criminal Investigation and FDIC Office of Inspector General for their partnership throughout this investigation. He also serves as the editor and founder of Ponzitracker, an Internet blog that tracks the proliferation of Ponzi schemes across the United States. Coincidentally, a related company funded with investor funds was, until recently, the beneficiary of an investment by Barbara Corcoran a star of CNBCs hit show Shark Tank. During that time frame, he fraudulently obtained in excess of $230 million from more than 150 victims, including individuals, businesses, government agencies, and financial institutions. In early December 2011, Wannakuwatte set up a conference call between himself, an IMG employee, and a Bridge Bank representative. Deepal took full advantage of him in any way he could, she wrote. While Mr. Wannakuwatte contemplates his situation from behind prison walls in the coming years, my office will continue to try to identify and liquidate ill-gotten gains that rightfully belong to his victims.. In California, a former tennis team owner was arrested earlier this year and charged with defrauding investors out of at least $125 million through his medical equipment businesses, International Manufacturing Group (IMG) and RelyAid. He essentially overpaid, using the victims money, said U.S. Attorney Benjamin Wagner at a news conference following Wannakuwattes court appearance. Robert Rocco, 48, was indicted in 2013 on multiple federal fraud charges that could land him behind bars for decades. Get FBI email alerts Wannakuwattes decadelong crime constitutes very possibly the largest Ponzi scheme in the regions history, Wagner said. One spoke about having to delay retirement and sell his house to make ends meet. Over twelve years (2002 to 2014), Wannakuwatte convinced several investors that their money was financing RelyAid Global Healthcare, a manufacturer of latex medical gloves which Wannakuwatte claimed had $125 million worth of contracts with the U.S. Department of Veterans Affairs. For more than decade, up until February 2014, Sacramento businessman (and Ponzi scammer extraordinaire) Deepal Wannakuwatte fooled his investors and his lenders into believing that he and his. In addition, Persaud touted his status as a certified financial planner to assure investors that their funds were safe. The impact on the victims in this case was often devastating. Several years later, Rocco revealed that a rival Indian tribe had stolen approximately $4 million to $5 million of uninsured cigarette inventory from the reservation, resulting in a total loss to investors. And after several months of reviewing more than 10 years worth of business records, analyzing tax and other financial documents, conducting interviews of employees and victims, serving search warrants, etc., law enforcement was able to piece together how the scam worked. A former owner of the Sacramento Capitals professional tennis team, Wannakuwatte purchased properties in Hawaii, Oregon and California. Guru operated Susi Emu Farms (Susi Farms), which promised potential investors a weekly return of $120 in exchange for a $3,000 investment that supposedly purchased a baby emu. The sentence wasnt a surprise; it matched the terms of a plea agreement Wannakuwatte made with prosecutors in May. The letter was read aloud by Assistant U.S. Attorney Kevin Khasigian. But prosecutor Michael Beckwith had called the evidence overwhelming, and defense attorney Donald Heller said it was clear almost from the start that a plea bargain made more sense than a trial. There are 20 individuals that go by the name of Deepal Wannakuwatte. Wannakuwatte used the money from investors to cover these losses and pad his own pockets. See U.S.S.G. . An official website of the United States government. Have a question about Government Services? Wannakuwatte ran a Ponzi scheme in California through his company, International Manufacturing Groupone where money from new investors goes to interest payments from older investorsfor nearly a decade before the scam imploded in 2014. Marlon Gary Hibbert and Verna Hibbert were charged with 38 criminal counts in mid-2013 by Toronto police, who alleged that the pair lived a luxurious lifestyle by misappropriating investor funds. Joseph Signore, his wife Laura Signore, Paul Schumack and Craig Allen Hipp were recently arrested on multiple fraud charges stemming from their roles in JCS Enterprises. As an aside, IMG actually had been in business for more than 25 years and actually did sell gloves and other supplies to businesses, including medical providers. However, the reality was that Persaud did not invest in futures markets; instead, his trading strategies were based on lunar cycles and the gravitational pull between Earth and the moon. (ECF No. There is no amount of time I can sentence you to that would appease your victims., This sentence brings to an end to one of the longest running, most extensive, and most damaging fraud schemes our region has ever seen, said U.S. Attorney Wagner. emailStay Connected When Hoopers mother died four years ago, Wannakuwatte attended the funeral.
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