emailStay Connected In addition, Persaud also operated the White Elephant Trading Company LLC (White Elephant), which he registered with the state of Florida under the name of his family members to avoid scrutiny from his employer. Then last week he turned the. Persaud solicited investors by promising risk-free annual returns ranging from 6% to 18%, telling them he was able to generate such gains through trading in futures and other markets. When Hoopers mother died four years ago, Wannakuwatte attended the funeral. Wannakuwatte claimed that his companies, IMG and Relyaid, were involved in the international manufacture, shipment, and distribution of latex gloves and did more than $100 million of business with the Department of Veterans Affairs every year. Put another way, a Ponzi scheme was uncovered, on average, once every four days from 2008 to 2013. UNITED STATES OF AMERICA, Plaintiff, v. DEEPAL WANNAKUWATTE, Defendant. 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. - Request written financial informationsuch as a prospectus, annual reports, or financial statementsthen compare the written information to what you were told. 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. Deepal Wannakuwatte seemed prepared, barely a week ago, to accept a lengthy prison term for orchestrating one of the biggest Ponzi schemes in Sacramento history. 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. Calif. Bank & Trust Beats Suit Over Depositor's Ponzi Scheme 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. FBI, Penn State offer online death notification training for first responders. Investors were told that an investment in JCS Enterprises involved the purchase of a virtual concierge machine (VCM) that resembled an automatic teller machine and allowed users to view advertisements for products or services. This ruling concludes the federal criminal prosecution; civil proceedings in the United States Bankruptcy Court are ongoing. According to prosecutors, Wannakuwatte duped individual investors and professional bankers alike into pouring $150 million into the company over the past decade or so. In 2013, Wannakuwatte claimed to have more than $125 million in VA contracts alone. Wannakuwatte filed court papers this week saying the loss was really somewhere between $50 million and $80 million. Jul. Former Owner Of Sacramento Capitals Tennis Team Sentenced To 20 Years 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. 3582(c)(1)(A) and U.S.S.G. A .gov website belongs to an official government organization in the United States. . The Court acknowledges USP Lompoc has had one of the worst COVID-19 outbreaks of any federal prison. Deepal Wannakuwatte and Betsy are not now, and never have been, members or owners of Sunfire. Wannakuwatte took over the Capitals in 2012 after previous owner Bob Cook filed for bankruptcy protection. Deepal Wannakuwatte - Bio, News, Photos - Washington Times To work, or not, on the Sabbath Gerald Groff shares his story with Alex New Episode: American sovereignty is in peril Frank Gaffney. ), No. One of the ways investors were solicited to invest with JCS Enterprises was through the placement of videos on YouTube. Next: A Pastor And a $9 Million Foreign Currency Ponzi Scheme. In addition to the prison term, United States District Judge Troy L. Nunley ordered Wannakuwatte to forfeit multiple properties, vehicles, business interests, and bank accounts to be used to provide restitution to victims. Under Wannakuwattes plea deal, both the government and defense recommended a 20-year prison term. GDC Stock Alert: Why Is GD Culture Group Up 700% Today? Former Sacramento Capitals World TeamTennis owner Deepal Wannakuwatte was sentenced Thursday in federal court in Sacramento to 20 years in prison for his long-running fraud. Todays order brings to an end the criminal proceedings against Mr. Wannakuwatte, who operated the largest Ponzi scheme in Sacramento history, said U.S. Attorney Wagner. He said Wannakuwatte spent the money on personal and business expenses. There are 20 individuals that go by the name of Deepal Wannakuwatte. 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 Defendant requests the Court reduce his term of imprisonment due to the COVID-19 pandemic. The American Greed episode Medical Gloves with Holes tells the story of Deepal Wannakuwatte. 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. 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. 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. When incoming investor funds were not enough to sustain the growing obligations to existing investors, the scheme collapsed and Susi Emu Farm executives fled town. 3582(c)(1)(A). Deepal, you are a sociopath, he said. Wannakuwatte told his victims that his Sacramento-based companiesInternational Manufacturing Group (IMG) and Relyaid Global Health Carewere involved in the international manufacture and sale of latex gloves. 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. 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. According to authorities, Wannakuwattes companies solicited investors by telling them it had lucrative contracts totaling at least $100 million with the U.S. Department of Veterans Affairs (the USVA). n. 1(A). Mar. at 4.) Unfortunately, it wasnt. He was indicted in March. Sacramento Businessman Sentenced to 20 Years in Prison for $100 - FBI He is currently serving prison time for his offense, and these offenses might be recorded before and during prison time. We thank the IRS Criminal Investigation and FDIC Office of Inspector General for their partnership throughout this investigation. Former Owner Of Sacramento Capitals Tennis Team Pleads Guilty To $50 (ECF No. The FBI joined forces with IRS and VA investigators and began looking at Wannakuwatte, his businesses, and his financials. He has been held without bail since his arrest in late February. While tracing its origin back at least 80 years, the past decade has been unprecedented in terms of the number and severity of Ponzi schemes. 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. But he walked into court that day and announced that hed fired his original lawyer, Donald Heller, claiming that Heller had coerced him into pleading guilty. According to the indictment, beginning in September 2011, Wannakuwatte sought a line of credit from Bridge Bank. Wannakuwatte, dressed in his orange Sacramento County jailhouse uniform, sat at the defense table and stared at the floor as Ashley berated him. But as of the date of this Order, the BOP reports only eight active inmate cases of COVID-19 and 163 recovered inmates at USP Lompoc. In return, those affiliates were handsomely rewarded with daily returns of 1.5%. Share on Facebook Facebook Share sensitive information only on official, secure websites. 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 A North Carolina company known as ZeekRewards, or Zeekler, solicited investors worldwide to participate in its penny-auction business where participants could bid on popular merchandise in 1-cent increments. See U.S.S.G. At least 385 of the perpetrators were sent to prison, with a total of nearly 5,000 years of cumulative prison sentences handed down. He is a shadow of the man. 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. VIDEO 04:01. The agony of his victims, however, continues. Rocco was formerly the president of the Dix Hills Soccer Club, where he enjoyed exclusive access to company bank accounts. In addition to prison time, each of the men was ordered to pay restitution to scheme victims. ) or https:// means youve safely connected to the .gov website. Next: $125 Million Latex Glove Ponzi Scheme. 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. United States v. Wannakuwatte - Casetext Ironically, Steven Palladino was also accused of using investor funds to make court-ordered payments stemming from a previous conviction for defrauding an elderly relative. 1B1.13(2) (requiring a defendant to demonstrate that he is "not a danger to the safety of any other person or to the community"); see also 18 U.S.C. 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. After his arrest, the World TeamTennis league revoked his franchise and disbanded the team. 3582(c)(1)(A)(i). Subscribe Later, Wannakuwatte stood silently as defense attorney Philip Cozens read a letter from his client in which Wannakuwatte apologized to his victims and said he had shamed his family and his Sri Lankan roots.
