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BOP records do, however, confirm Defendant has been diagnosed with essential (primary) hypertension. Unfortunately, the victims will likely remain short-changed. But the hourlong hearing in U.S. District Court didnt lack for drama. 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. How to Send Money To Deepal Wannakuwatte's Inmate Trust Fund! Wannakuwatte has been in custody since his arrest on February 21, 2014. 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. This New York investment adviser rose to prominence through high-profile leadership positions in the financial industry, including a stint as non-executive chairman of the Nasdaq Stock Exchange. 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. View Crime Records & Information Of Inmate Deepal Wannakuwatte Sacramento Capitals - Wikipedia 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. Get FBI email alerts Promptly, on the next day, the pending motions to set aside the defaults were filed. Next: A Virtual Concierge Ponzi Scheme With A Shark Tank Link. While certainly paling in comparison to Bernie Madoffs massive Ponzi scheme, ZeekRewards might be one of the largest Ponzi schemes in history as measured by the sheer number of victims affected. All told, the financial impact of Ponzi schemes is pegged at more than $50 billion over the past six years. Rather than having annual sales of $100 million, it appeared that annual sales were closer to $25,000. The $50 billion in Ponzi schemes uncovered from 2008 to 2013 would rank in the top 75 countries in the world in terms of gross domestic product. 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. The companies came under suspicion after a creditor filed a lawsuit alleging nonpayment of a loan. 1343. watch now. 10 of the World's Craziest Ponzi Schemes | InvestorPlace Next: A Pastor And a $9 Million Foreign Currency Ponzi Scheme. A .gov website belongs to an official government organization in the United States. Defendant has not met his burden. n. 1(A). 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. Persaud is currently serving a three-year sentence in federal prison. 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. Wannakuwatte has been indicted on three charges of bank fraud and making false statements to a financial institution, which could land him 30 years in prison and $3 million worth of fines $1. He used investors money to pay the overstated tax returns. One of the properties Wannakuwatte hasnt yet surrendered is his West Sacramento medical company, whose assets were frozen after a group of investors sued. Zions Bank accused of facilitating fraud in California Ponzi scheme 2:14-cr-00067-TLN (E.D. 1125 N. Charles St, Baltimore, MD 21201. 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. What Is the Kenvue IPO Price Range? (ECF No. Robert Rocco, 48, was indicted in 2013 on multiple federal fraud charges that could land him behind bars for decades. 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. After his arrest, the World TeamTennis league revoked his franchise and disbanded the team. As a whole, Defendant's arguments about COVID-19 are too general and wide-ranging. FBI.gov is an official site of the U.S. Department of Justice. A locked padlock An Internet Mortgage Provider Reaps the Rewards of Lending Boldly Based on these representations, IMG and RelyAid raised at least $125 million from numerous investors. A Toronto pastor and his wife were accused of defrauding more than 200 parishioners out of nearly $9 million under the ruse that they were generating above-average returns through dabbling in foreign-currency trading. Secure .gov websites use HTTPS If convicted, Wannakuwatte faces a maximum sentence of 30 years in prison and a $1million fine for each count. In 2014, the. 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.. 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. Betsy Wannakuwatte, the wife of Deepal Wannakuwatte, was served by personal service on the same date. However, the payment of these returns is made not from legitimate business activities, but rather from incoming funds from new investors. However, Defendant fails to persuade the Court that his hypertension qualifies as "extraordinary and compelling" reason for release within the context of 18 U.S.C. Make your practice more effective and efficient with Casetexts legal research suite. Official websites use .gov This case is the product of an investigation by the Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigation, and the Federal Deposit Insurance Corporation, Office of Inspector General, Office of Investigations. Red flags, copy-with-cite, case summaries, annotated statutes and more. 3582(C)(1)(A)(i). Jul. Modelled Employees (all sites): ? D & A INTERNATIONAL IMPORT . 3582(c); see Dillon v. United States, 560 U.S. 817, 824-25 (2010). Finally, the toll on the criminal justice system is also noteworthy. This story was originally published May 8, 2014, 12:11 PM. 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. 18 U.S.C. He was ordered by a federal judge last month to pay millions in restitution to his victims, FBI.gov is an official site of the U.S. Department of Justice. 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. The conference call was made to verify the authenticity of the $25 million accounts receivable ledger provided by Wannakuwatte. Deepal, you are a sociopath, he said. Wannakuwatte subsequently drew down the line of credit, taking approximately $4.3 million from Bridge Bank. A .gov website belongs to an official government organization in the United States. Show Crime Records Powered by. He used investors money to pay the overstated tax returns. 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. Joseph W. Martini, Wiggin and Dana LLP, Stamford, CT. It is also encouraging that Defendant recovered without any documented complications. Deepal Wannakuwatte, owner of the Las Vegas Neon, was arrested Thursday Take the time to do your own research on the investments potentialand on the person making the offer. However, relief under 18 U.S.C. There, the judge said, Deepal, you are a sociopath. 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). 3582 (C) (1) (A) (i). An official website of the United States government. Rocco was formerly the president of the Dix Hills Soccer Club, where he enjoyed exclusive access to company bank accounts. At least 385 of the perpetrators were sent to prison, with a total of nearly 5,000 years of cumulative prison sentences handed down. Prosecutors have said the net loss to investors came to $109 million. Assistant United States Attorney Michael M. Beckwith is prosecuting the case. 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Former Sacramento tennis team owner ordered to pay $108 million In truth, the government contracts were worth only $25,000. Wagner said its still operating, although at a far lower volume than what Wannakuwatte had represented to investors. Copyright 2015, American Bar Association. 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. In a Ponzi scheme, early investors often get repaid with dollars pumped in by newcomers. Fri, Aug 12 2016 4:30 PM EDT. He has served approximately 76 months of his 240-month sentence of imprisonment and his projected release date is March 7, 2031. Wannakuwatte used the money from investors to cover these losses and pad his own pockets. A thief, a serial thief.. Experts said it would have been difficult for Wannakuwatte to withdraw his guilty plea, and his new lawyer, Cozens, announced to the court in September that his client was ready to be sentenced. Share sensitive information only on official, secure websites. 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. 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 FBI's Sacramento Field Office, Acting Special Agent in Charge Thomas McMahon for the IRS-Criminal This case is the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation. He's now serving a 20-year sentence for fraud. In 2014, the 63-year-old Wannakuwatte was sentenced to 20 years in jail. (ECF No. He is scheduled to be arraigned on March 21, 2014. . "It's imperative that people do background checks on any kind of person they are going to do business with," said David Schassler, a licensed private investigator in New . 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. Barely three months ago, Deepal Wannakuwatte was the picture of success: owner of a medical-supply company and of the Sacramento Capitals professional tennis team. Wannakuwattes companies, IMG and Relyaid, were involved in the international manufacture, shipment, and distribution of latex gloves. Nunley was unsparing as well, calling Wannakuwatte a liar and adding: Youre an evil person, theres no way you can get around that.. For the foregoing reasons, the Court hereby DENIES Defendant's Motion for Compassionate Release Pursuant to 18 U.S.C. An investigation began after a tip from an investor in 2013 and involved a joint investigation by the Federal Bureau of Investigation, the Internal Revenue Service, and the Federal Deposit Insurance Corporation, Office of the Inspector General. United States v. Wannakuwatte - Casetext For its part, the Government correctly notes that the presentencing report ("PSR") indicates Defendant underwent full knee replacement in 2012 and injured his left wrist in May 2014, but otherwise indicates Defendant is in good health. The lesson learned from a case like this? UNITED STATES OF AMERICA, Plaintiff, v. DEEPAL WANNAKUWATTE, Defendant. In fact, while he did have a contract with the VA, it was only worth up to $25,000 a year. Police see link to similar incidents. Get FBI email alerts Share on Twitter Twitter FBI.gov is an official site of the U.S. Department of Justice. emailStay Connected Sacramento Capitols Former Owner Ordered to Pay Restitution in Ponzi Scheme The Sentencing Commission's relevant policy statement on compassionate release identifies medical conditions that satisfy the "extraordinary and compelling" requirement. Ponzi schemes have seemingly endless variations, which has led to this list of newsworthy Ponzi schemes, ranging from a emu-raising Ponzi scheme to astrology to latex gloves. at 4.) The dependable returns, as well as the use of advertising featuring popular Indian film stars, caused the scheme to spread like wildfire. Then last week he turned the. He essentially overpaid, using the victims money, said U.S. Attorney Benjamin Wagner at a news conference following Wannakuwattes court appearance. 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 - Be wary of an investment opportunity that offers unusually high yields. Copyright He was indicted in March. /// /// /// /// /// /// /// ///. Many of these so-called net winners later faced clawback lawsuits by the court-appointed bankruptcy trustee seeking to recover funds for Madoffs victims who were not as fortunate.