The indictment alleges that between October and December 2011, Wannakuwatte provided Bridge Bank with a number of false documents, including personal and corporate tax returns that overstated his gross income and the gross receipts and sales for IMG, a false corporate financial statement from IMG that was purportedly reviewed by a CPA, and a false accounts receivable ledger detailing more than $25 million in accounts receivable from the VA. Call The Bees Dale Kasler, (916) 321-1066. We thank the IRS Criminal Investigation and FDIC Office of Inspector General for their partnership throughout this investigation. . /content/aba-cms-dotorg/en/groups/litigation/committees/criminal/practice/2015/sacramento-capitols-former-owner-ordered-to-pay-restitution-in-ponzi-scheme. Share sensitive information only on official, secure websites. 1B1.13. Deepal took full advantage of him in any way he could, she wrote. In a Ponzi scheme, early investors often get repaid with dollars pumped in by newcomers. 138.) 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. 3553(a) (" 3553(a)") factors. If convicted, Wannakuwatte faces a maximum sentence of 30 years in prison and a $1million fine for each count. The Government filed an opposition. What Is the Kenvue IPO Price Range? Get FBI email alerts Wannakuwatte offered his investors several different bogus high-yield investment opportunities, most of which related to his purported relationship with the VA. And to prove his bona fides to potential investors and to lenders he was trying to borrow money from, he showed them phony corporate documents as well as actual personal and corporate tax returns where he had reported and paid taxes that falsely overstated his personal income and annual gross receipts and sales for IMG. When Hoopers mother died four years ago, Wannakuwatte attended the funeral. 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. You are a liar, a serial liar. Bernie Madoffs scam was merely one of more than 500 Ponzi schemes of $1 million or more that collectively involved over $50. Deepal Wannakuwatte, former owner of the Sacramento Capitols professional tennis team, has been ordered to pay more than $100 million in restitution to victims of a decade-long Ponzi scheme he perpetrated. A locked padlock 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. After his arrest, the World TeamTennis league revoked his franchise and disbanded the team. - And if you think youve been scammed, report it to the Securities and Exchange Commission, your states securities regulator, or a law enforcement agency. Gurus Emu-Raising Ponzi Scheme. Deepal Wannakuwatte, the former owner of the now-defunct Sacramento Capitals professional tennis team, was sentenced to 20 years in prison Thursday for perpetrating one of the costliest Ponzi. 3582(c)(1)(A) and U.S.S.G. Of the roughly 510 schemes represented in the database, the average Ponzi scheme size was $98.3 million, while the median scheme size was $10 million. According to the Commission, Zeek Rewards current cash holdings of $225 million were at risk of rapid depletion had investors elected to receive cash distributions rather than accumulate profit points. A receiver was appointed by a North Carolina federal court to preserve and recover assets for the benefit of investors, and has recently sought to recover winnings from net winners that were fortunate enough to profit off their investment with Zeek Rewards. The total losses to investor victims exceeds $100 million. 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. (Id. Deepal, you are a sociopath, he said. 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. Potential investors were told that their investment would be used to purchase the rights to old film footage that then would be used to produce and distribute movies and documentaries. 24, 2020). 3582(C)(1)(A)(i). While the company did sell latex gloves and did business with the VA, revenues were only a fraction of what he advertised and the business was in fact losing money. UNITED STATES DISTRICT COURT EASTERN DISTRICT OF CALIFORNIA. In order to establish his financial credibility, Wannakuwatte showed investors his personal and corporate tax returns where he actually reported and paid taxes that falsely overstated his annual personal income and the annual gross receipts and sales for IMG. SACRAMENTO, Calif. Deepal Wannakuwatte, 63, of Sacramento, pleaded guilty today to one count of wire fraud in furtherance of a long-running and large-scale fraud scheme, announced United States Attorney Benjamin B. Wagner, Special Agent in Charge Monica M. Miller of the FBI's Sacramento Field Office, Jose M. Martinez Special Agent in Charge for In 2013, Wannakuwatte claimed to have more than $125 million in VA contracts alone. Share on Twitter Twitter SACRAMENTO, CAOn 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. At times, Wanakuwatte set up fake conference calls between himself, a potential investor, and someone he falsely claimed was a VA representative. Wannakuwatte claimed he had already paid back some of the victims, but the court determined that he had not met his burden of showing this to the court. 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. A .gov website belongs to an official government organization in the United States. The case began in September 2013, when our Sacramento office was contacted by a representative of one of Wannakuwattes business associates who thought he might be the victim of a Ponzi scheme. Share on Facebook Facebook As it is, the Court has no way of knowing the extent of Defendant's hypertension, and Defendant fails to provide any evidence to confirm the existence or extent of his other alleged medical conditions. Defendant is currently serving his sentence at USP Lompoc. Get FBI email alerts . Next: Online Auction Revealed to Be $500 Million Ponzi Scheme. FBI.gov is an official site of the U.S. Department of Justice. He used investors money to pay the overstated tax returns. 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. For the foregoing reasons, the Court hereby DENIES Defendant's Motion for Compassionate Release Pursuant to 18 U.S.C. 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.. 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. Assistant United States Attorneys Michael Beckwith and Kevin Khasigian are prosecuting the case. Copyright Among other things, Wannakuwatte was ordered to turn over a $3 million private plane that had been pledged as collateral.. Michael Hooper, a Carmichael man who lost more than $200,000, recalled how Wannakuwatte ingratiated himself with his victims. Wannakuwatte, dressed in his orange Sacramento County jailhouse uniform, sat at the defense table and stared at the floor as Ashley berated him. He has been held without bail since his arrest in late February. 1125 N. Charles St, Baltimore, MD 21201. Additionally, Hibbert and his wife diverted investor funds for their own personal use, including the purchase of luxury automobiles and real estate. 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. Wagner said its still operating, although at a far lower volume than what Wannakuwatte had represented to investors. In that position, Rocco solicited club members to invest in his company, Limestone Capital Services, which they were told provided wholesale financing of cigarette purchases for a tobacco shop located on the Shinnecock Native American Reservation. 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. - Check with federal and state securities regulators to find out if there have been any complaints against the company or person youre thinking of doing business with. With the millions he collected, Wannakuwatte - a former owner of the now defunct Sacramento Capitals professional tennis team - bought real estate in Hawaii, Oregon and California. 3582(c)(1)(A). watch now. Unfortunately, it wasnt. Prosecutors have said the net loss to investors came to $109 million. In fact, while he did have a contract with the VA, it was only worth up to $25,000 a year. And while his victims suffered, Wannakuwatte purchased luxury homes, vehicles, airplanes, and even a professional tennis team. Although Defendant claims to suffer from multiple, serious medical conditions, he fails to submit any medical documentation to confirm that he actually suffers from those conditions. Based on the false representations, Bridge Bank authorized a line of credit worth $4.5 million. Defendant has not met his burden. SACRAMENTO, Calif. Deepal Wannakuwatte, 63, of Sacramento, 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. SACRAMENTO, Calif. Deepal Wannakuwatte, 63, of Sacramento, was charged today in a three-count indictment returned today with bank fraud and making false statements to a financial institution, United States Attorney Benjamin B. Wagner announced. A New York man was accused of using his position as head of a soccer club to dupe investors out of more than $5 million in a Ponzi scheme that purportedly financed the sale of cigarettes to a Native American Indian reservation. Full title:UNITED STATES OF AMERICA, Plaintiff, v. DEEPAL WANNAKUWATTE, Defendant. The letter was read aloud by Assistant U.S. Attorney Kevin Khasigian. FBI, Penn State offer online death notification training for first responders. Deepal Wannakuwatte, owner of the Las Vegas Neon, was arrested Thursday in Sacramento, Calif., on federal fraud charges. For the reasons set forth below, the Court DENIES Defendant's motion. In India, thousands of citizens were duped out of an estimated $50 million after authorities uncovered a massive Ponzi scheme that promised steady returns supposedly generated not from stocks, not from options but from raising emus. American Greed airs Thursdays at 10pm on CNBC. in Tampa, Fla. To date, Madoffs victims have recovered nearly 50% of their losses through the trustees efforts, and this number is expected to increase. Next: A Pastor And a $9 Million Foreign Currency Ponzi Scheme. In 2013, Wannakuwatte claimed to have more than $125 million in VA contracts alone. The sentence imposed today is tantamount to a life sentence, although no amount of prison time will undo the harm he caused to so many victims. ) or https:// means youve safely connected to the .gov website. 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. 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. Subscribe Five of these schemes have raised at least $1 billion from investors, and Bernie Madoffs scheme is recognized as the worst Ponzi scheme in history. Deepal Wannakuwatte - 1 Criminal record(s) found. Among his victims were banks, an Indian tribe in Washington state, as well as roughly 150 individuals. 95814, Telephone:(916) 554-2700 In fact, while he did have a contract with the VA, it was only worth up to $25,000 a year. But the hourlong hearing in U.S. District Court didnt lack for drama. 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. 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. Persaud was able to raise at least $1 million from investors. 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. The dependable returns, as well as the use of advertising featuring popular Indian film stars, caused the scheme to spread like wildfire. Sacramento, CA. A lock ( Finally, the toll on the criminal justice system is also noteworthy. Wannakuwatte was born in Sri Lanka and moved to Georgia to play tennis in college. When you realize the case has problems from the defense side, you want to recognize those problems early on, Heller said after the court hearing. Although the government has initiated proceedings to seize his home in South Land Park, vacation properties in Hawaii and on the Oregon coast, and other assets, its considered unlikely that victims will receive more than pennies on the dollar. Today hes an admitted felon, awaiting a likely 20-year prison term, exposed as possibly the most prolific con artist in Sacramento history. While Sundown did actually engage in comic book production, the resulting revenues were not nearly enough to make the promised returns to investors. Nasdaq Your membership has expired - last chance for uninterrupted access to free CLE and other benefits. Fri, Aug 12 2016 4:30 PM EDT. {{currentYear}} American Bar Association, all rights reserved. Police see link to similar incidents. Share sensitive information only on official, secure websites. - Request written financial informationsuch as a prospectus, annual reports, or financial statementsthen compare the written information to what you were told. 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. Horacio Ortega-Martinez, 36, a citizen of Mexico residing in Bakersfield, was sentenced today to 18 months in prison for possessing roosters for the purpose of using them in an animal A Bakersfield man was sentenced today to an additional month in prison to be followed by 11 months home detention and 36 months of supervised release for knowingly aiming the Federal agent pleaded guilty Wednesday to one count of making a false statement in connection with a sexual relationship she had with a victim witness in a separate federal criminal Sacramento Main Office is judge hatchett show real, currys kettle and toaster,

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