FBI.gov is an official site of the U.S. Department of Justice. Investors were told that their VCM would be placed in a business where it could generate lucrative profits that allowed the payout of annual returns of 80% to 120%. 501 I Street, Suite 10-100 However, Persauds trading strategy of relying on lunar cycles to make trades was not only undisclosed to investors, but also generated more than $400,000 in losses. Deepal Wannakuwatte, the former professional tennis team owner who ran one of the biggest Ponzi schemes in Sacramento history, has been ordered to repay his victims $108.2 million. 10 of the World's Craziest Ponzi Schemes | InvestorPlace 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 the instant case, it is undisputed that Defendant has met the threshold exhaustion requirement. At least two of the investors were in court to watch Wannakuwatte plead guilty. Wannakuwattes companies, IMG and Relyaid, were involved in the international manufacture, shipment, and distribution of latex gloves. Even when excluding the three largest Ponzi schemes, the average scheme size was still $43.3 million. 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. I want to commend the FBI and IRS-CI for detecting and swiftly stopping this scheme before it caused even greater losses., Wanakuwattes victims individuals, businesses, government agencies, venture funds, and financial institutions suffered as his elaborate scheme collapsed. . The dependable returns, as well as the use of advertising featuring popular Indian film stars, caused the scheme to spread like wildfire. Investor funds were diverted for a variety of unauthorized purposes, including trips to the Bahamas, hundreds of thousands of dollars in gambling losses, and even the payment of rent for Steven Palladinos mistress. watch now. Prosecutors have said the net loss to investors came to $109 million. 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. In total, the venture raised over $10 million from at least 40 investors. Another submitted a poem that called Wannakuwatte a miserable soul.. In the early 20th century, a little-known Italian immigrant gained international notoriety after his investment venture promising astronomical returns through the resale of postal reply coupons was proved to be mathematically impossible. Instead, Rocco was accused of operating a Ponzi scheme that used investor funds to pay returns. This included schemes from nearly every U.S. state only eight states did not record a hit on our database. 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. Convicted Sacramento Businessman Ordered To Pay Over $108 Million In California Schemin' - Utah Stories Next: $125 Million Latex Glove Ponzi Scheme. U.S. Attorney's Office, Eastern District of California, Domestic Violence, Child Exploitation, and Human Trafficking Prevention, Sacramento Businessman Indicted For Bank Fraud, 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. Donnie Wahlberg Pokes Fun At Brother In Wahlburgers Ads, 2012-2023, 2paragraphs Productions, LLC. Bankruptcy trustee sues victims of massive Sacramento Ponzi scheme Deepal Wannakuwatte - 1 Criminal record(s) found. It rivals the Loomis Wealth Solutions case, a Roseville scam exposed in 2008 that generated an estimated $100 million in losses to investors. Defendant requests the Court reduce his term of imprisonment due to the COVID-19 pandemic. Defendant cites the conditions of his confinement at USP Lompoc as an additional factor in his vulnerability. View Crime Records & Information Of Inmate Deepal Wannakuwatte He used investors money to pay the overstated tax returns. - Request written financial informationsuch as a prospectus, annual reports, or financial statementsthen compare the written information to what you were told. How to Send Money To Deepal Wannakuwatte's Inmate Trust Fund! Share sensitive information only on official, secure websites. A thief, a serial thief.. As to his conditions of confinement, Defendant has not shown he is unable to manage his health conditions and minimize his risks through self-care. 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. See U.S.S.G. 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. 3553(a) (" 3553(a)") factors. The defendant offered up an apology, read aloud by his lawyer, and accepted his prison sentence in silence. Court records show that the companys revenue last year totaled less than $5 million. at 4.) The video promised that the VCMs would generate income for years, and promised that a $3,500 investment could produce huge returns. The alleged mastermind, Joseph Signore, is also accused of soliciting investors via emails that included a Bible passage intended to create a false sense of security and appeal to the religious beliefs of investors. He is a shadow of the man. - 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. . Deepal Wannakuwatte. Police see link to similar incidents. In exchange for their investment, Rocco promised investors annual returns ranging from 15% to 18%. 95814, Telephone:(916) 554-2700 American Greed: Exclusive Clip - "Deceiving His Own Mother" - CNBC 3582(C)(1)(A)(i). Wannakuwatte filed court papers this week saying the loss was really somewhere between $50 million and $80 million. The Sentencing Commission's relevant policy statement on compassionate release identifies medical conditions that satisfy the "extraordinary and compelling" requirement. After their release from prison, the trio formed Sundown Entertainment Inc. (Sundown), which purported to specialize in the distribution of film and comic-book rights. In a series of lawsuits in U.S. Bankruptcy Court, trustee Beverly McFarland has sued several victims of disgraced tennis-team owner Deepal Wannakuwatte, who was sentenced to 20 years in prison. Wannakuwattes companies, IMG and Relyaid, were involved in the international manufacture, shipment, and distribution of latex gloves. 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. And hell be doing that from his jail cell, where hell be serving out his 20-year sentence. Mar. He has been held without bail since his arrest in late February. The Court is mindful that people with certain medical conditions, including hypertension, can be more vulnerable to COVID-19. American Greed airs Thursdays at 10pm on CNBC. 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. Full title:UNITED STATES OF AMERICA, Plaintiff, v. DEEPAL WANNAKUWATTE, Defendant. However, while IMG and RelyAid did have a business relationship with the USVA, authorities alleged that this relationship was grossly overstated. Sacramento, CA. In total, nearly 1 million affiliates would entrust more than $500 million to ZeekRewards. ), No. 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. The team was renamed the Las Vegas Neon. The loss has devastated him, according to a letter from his wife, Jayna. ) or https:// means youve safely connected to the .gov website. [1] [2] The new Las Vegas team was shut down a few weeks later, before it even started after owner Deepal Wannakuwatte was arrested for running a Ponzi scheme. Have a question about Government Services? Heller denied that. by 2Paragraphs in Culture | August 17, 2016, Deepal Wannakuwatte, American Greed (CNBC). His plea followed weeks of negotiations between his lawyer and federal prosecutors. You are a liar, a serial liar. The total losses to investor victims exceeds $100 million. Id. 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.
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