California Schemin' - Utah Stories Website: www.ismiledentalproducts.com Employees (this site): ? 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. In total, nearly 1 million affiliates would entrust more than $500 million to ZeekRewards. Investors are promised above-average returns that generally carry little risk. 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. United States v. Wannakuwatte, 2:14-CR-00067-TLN - Casetext He pleaded guilty to a count of wire fraud in May. UC Davis senior, 20, killed in weekend stabbing remembered as exceptional academic star, Swarms of quakes shake Salton Sea region in Southern California, seismologists say, Preschool teacher arrested during nap time after body found, California cops say, Second stabbing homicide at Davis park in 4 days UC Davis student identified as victim, No other way to say it: The moment was too big for the young Sacramento Kings | Opinion, Kings-Warriors: Domantas Sabonis says battered, bruised left eye hurts going into Game 7, California prison inmate dies at New Folsom in suspected homicide, officials say, Folsom police arrest Sacramento man on theft charges using GPS-tracked bait items, Sacramento PD rolls out new mobile police station to help reach residents, After high-speed chase near Sacramento, heres the hot spot CHP says motorcyclist was hiding, El Dorado man arrested after Roseville bank robbery. (ECF No. 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. We are committed to aggressively pursue those who attempt to circumvent the law for personal gain., This case shows that the appearance of success can mask a tangled financial web of lies, said Acting Special Agent in Charge Thomas McMahon, IRS-Criminal Investigation. Heller denied that. Robert Rocco, 48, was indicted in 2013 on multiple federal fraud charges that could land him behind bars for decades. He falsely claimed that these companies did tens of millions of dollars in business with federal agencies every year, most notably the Department of Veterans Affairs. 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. We thank the IRS Criminal Investigation and FDIC Office of Inspector General for their partnership throughout this investigation. The total losses to investor victims exceeds $100 million. 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. 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. The loss has devastated him, according to a letter from his wife, Jayna. 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. Losses incurred by the victim financial institutions often threatened their financial stability and reputations. 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. Upon receiving funds, Wannakuwatte used the money to pay outstanding debts unrelated to the purpose of the loan. On June 18, 2020, Defendant filed the instant pro se motion for release pursuant to 18 U.S.C. Three men were sent back to federal prison after they concocted a Ponzi scheme in prison that promised lucrative returns through the distribution of comic book rights. 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. 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. 1B1.13, cmt. Share on Twitter Twitter 135. A former owner of the Sacramento Capitals professional tennis team, Wannakuwatte purchased properties in Hawaii, Oregon and California. Zions Bank accused of facilitating fraud in California Ponzi scheme Next: Online Auction Revealed to Be $500 Million Ponzi Scheme. . Despite having met the exhaustion requirement, Defendant is eligible for compassionate release only if he can demonstrate there are "extraordinary and compelling reasons" for a sentence reduction and such a reduction is "consistent with applicable policy statements issued by the Sentencing Commission." He is currently serving prison time for his offense, and these offenses might be recorded before and during prison time. 3582(C)(1)(A)(i). Michael Hooper, a Carmichael man who lost more than $200,000, recalled how Wannakuwatte ingratiated himself with his victims. This case was 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. Deepal Wannakuwatte - 1 Criminal record(s) found. 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. Nine of his victims made statements to the court, either in person or by letters read out loud by the prosecutor. 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. Wannakuwatte will be sentenced July 24 by U.S. District Judge Troy Nunley. 3553(a) (" 3553(a)") factors. Stock Market Crash Alert: Mark Your Calendars for May 3. Indeed, authorities alleged that Rocco even used his position as club president to withdraw nearly $67,000 from the clubs bank accounts a move that nearly depleted club coffers if not for the generosity of club benefactors to cover the shortfalls. U.S. observes National Crime Victims Rights weekpromoting victims rights and honoring crime victims and those who advocate on their behalf. A lock () or https:// means you've safely connected to the .gov website. This ruling concludes the federal criminal prosecution; civil proceedings in the United States Bankruptcy Court are ongoing. Therefore, the Court need not address whether Defendant is a danger to the community or the 18 U.S.C. Prosecutors say Wannakuwatte conned his victims into investing in a West Sacramento medical supply company whose revenue was just a fraction of what he claimed. Trust, but verify: How to do a background check like a pro - CNBC In an unusual turn, when it was revealed that at least 100,000 emus were abandoned and left to starve, the Indian government was forced to step in and purchase $200,000 in emergency rations to feed the emus. Fax Line:(916) 554-2900. 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. 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. 138 at 9-15. Real-time updates and all local stories you want right in the palm of your hand. After college, he moved to Sacramento, started his company and became a fixture on the areas tennis scene. Donnie Wahlberg Pokes Fun At Brother In Wahlburgers Ads, 2012-2023, 2paragraphs Productions, LLC. We thank the IRS Criminal Investigation and FDIC Office of Inspector General for their partnership throughout this investigation. 1343. The FBI joined forces with IRS and VA investigators and began looking at Wannakuwatte, his businesses, and his financials. Additionally, investor funds were used to support the lavish lifestyle of Persaud and his family members. Deepal Wannakuwatte - Bio, News, Photos - Washington Times Copyright 2015, American Bar Association. The warden denied Defendant's request on May 13, 2020. The sentence wasnt a surprise; it matched the terms of a plea agreement Wannakuwatte made with prosecutors in May. It is also encouraging that Defendant recovered without any documented complications. Sacramento Businessman Indicted For Bank Fraud 3582(c)(1)(A)(i). - 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. 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 Email Email. Wannakuwatte took over the Capitals in 2012 after previous owner Bob Cook filed for bankruptcy protection. 3582(c)(1)(A) and U.S.S.G. 3582(c)(1)(A) sets forth a rare exception to the general rule. Next: A Pastor And a $9 Million Foreign Currency Ponzi Scheme. Wannakuwattes companies, IMG and Relyaid, were involved in the international manufacture, shipment, and distribution of latex gloves. Real-time updates and all local stories you want right in the palm of your hand. Former Sacramento Capitals owner plans to switch to guilty plea, lawyer says, Bank fraud alleged against former Sacramento Capitals owner, UC Davis senior, 20, killed in weekend stabbing remembered as exceptional academic star, Swarms of quakes shake Salton Sea region in Southern California, seismologists say, Preschool teacher arrested during nap time after body found, California cops say, Second stabbing homicide at Davis park in 4 days UC Davis student identified as victim, No other way to say it: The moment was too big for the young Sacramento Kings | Opinion, Kings-Warriors: Domantas Sabonis says battered, bruised left eye hurts going into Game 7, California prison inmate dies at New Folsom in suspected homicide, officials say, Folsom police arrest Sacramento man on theft charges using GPS-tracked bait items, Sacramento PD rolls out new mobile police station to help reach residents, After high-speed chase near Sacramento, heres the hot spot CHP says motorcyclist was hiding, El Dorado man arrested after Roseville bank robbery. 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. 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. Wannakuwatte has been in custody since his arrest on February 21, 2014. See U.S.S.G. Next: M.S. Share sensitive information only on official, secure websites. Fax Line:(916) 554-2900. Convicted Sacramento Businessman Ordered To Pay Over $108 Million In Former Owner Of Sacramento Capitals Tennis Team Sentenced To 20 Years 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. He shows up at a funeral populated by people he was stealing from, Hooper said. 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. Wannakuwatte has been in custody since his arrest on February 21, 2014. 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. 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. An official website of the United States government. In a Ponzi scheme, early investors often get repaid with dollars pumped in by newcomers. Today hes an admitted felon, awaiting a likely 20-year prison term, exposed as possibly the most prolific con artist in Sacramento history. Because more than 30 days have elapsed since April 23, 2020, Defendant has met the exhaustion requirement. 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. At least 385 of the perpetrators were sent to prison, with a total of nearly 5,000 years of cumulative prison sentences handed down. - Request written financial informationsuch as a prospectus, annual reports, or financial statementsthen compare the written information to what you were told. 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.. 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. See 18 U.S.C. Assistant United States Attorney Michael M. Beckwith is prosecuting the case. 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. 3553(a) (" 3553(a)") factors do not support a reduced sentence. Sacramento Capitals - Wikipedia The Court is mindful that people with certain medical conditions, including hypertension, can be more vulnerable to COVID-19. 20.) Shortly before Wannakuwatte was arrested, the team announced it was moving to Las Vegas. Take the time to do your own research on the investments potentialand on the person making the offer. His plea followed weeks of negotiations between his lawyer and federal prosecutors. 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. Todays sentencing represents the severity of the fraud committed by Wannakuwatte and those he hurt the most: the victims who fell prey to the massive fraud scheme. In addition to criminal charges, Joseph Signore and Paul Schumack also are facing civil fraud charges filed by the Securities and Exchange Commission. 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 5 Hypergrowth Stocks With 10X Potential in 2023, purchase $200,000 in emergency rations to feed the emus, a $3 million private plane that had been pledged as collateral., beneficiary of an investment by Barbara Corcoran, Penny Stocks How to Profit Without Getting Scammed, When Fraud Bites Business: Lost Fortunes, Reputations and Lives, 3 Big Ways That Medicare Fraudsters Rip You Off, Even if Block Beats on Earnings, Stay Away From SQ Stock, Louis Navellier and the InvestorPlace Research Staff, Rare Stock Indicators Show the Market Is About to Skyrocket, Ideanomics (IDEX) Stock Surges 90% Ahead of Possible Delisting, MULN Stock Alert: UNC Charlotte Orders Mullen Vans. Owner of Sacramento firms accused of fraud - kcra.com 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. 10 of the World's Craziest Ponzi Schemes | InvestorPlace To create the appearance of a successful business, Wannakuwatte is accused of doctoring actual invoices with significant markups. A lock ( Viking Financial Group (Viking) was owned and operated by Steven Palladino, his wife Lori Palladino, and his son, Greg Palladino. The tax refunds and other assets will be eventually distributed among his victims, but its all but certain they wont get full recovery. I want to commend the FBI and IRS-CI for detecting and swiftly stopping this scheme before it caused even greater losses., Wanakuwattes victimsindividuals, businesses, government agencies, venture funds, and financial institutionssuffered as his elaborate scheme collapsed. He will also surrender $8 million to $12 million worth of federal income tax refunds. IMG's CEO, Deepal Wannakuwatte, told banks and investors that IMG had a $100-million contract with the U.S. Department of Veterans' Affairs ("VA") to provide medical gloves at facilities around the countrysubject only to his ability to raise capital to purchase or import the gloves from Asia. In 2014, the. But the hourlong hearing in U.S. District Court didnt lack for drama. 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. It didnt. A lock ( RelyAid did have one contract with the Department but it was worth only $25,000. 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. You are a liar, a serial liar. Full title:UNITED STATES OF AMERICA, Plaintiff, v. DEEPAL WANNAKUWATTE, Defendant. 20. 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. Professional and Commercial Equipment and Supplies Merchant Wholesalers Merchant Wholesalers, Durable Goods Wholesale Trade Printer Friendly View Address: 879 F St Ste 120 West Sacramento, CA, 95605-2384 United States Phone: ? All rights reserved. They all painted a picture of a man who preyed on mostly elderly investors and duped many of them out of their retirement savings. Owner of Las Vegas WTT franchise arrested on federal fraud charges Court records show that the companys revenue last year totaled less than $5 million. 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. One of the ways investors were solicited to invest with JCS Enterprises was through the placement of videos on YouTube. 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. 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. . 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. Call The Bees Dale Kasler, (916) 321-1066. 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. 501 I Street, Suite 10-100 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. - Be extremely cautious about unsolicited offers to invest. ) or https:// means youve safely connected to the .gov website. Wagner said he believes the companys assets will eventually be turned over to the bankruptcy court. . Under his original indictment, Wannakuwatte could have received up to 90 years in prison. BOP records do, however, confirm Defendant has been diagnosed with essential (primary) hypertension. 00:43. He's now serving a 20-year sentence for fraud. 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. 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,. watch now. 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. Assistant United States Attorneys Michael Beckwith and Kevin Khasigian are prosecuting the case. He's now serving a 20-year sentence for fraud. 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. 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. Florida authorities arrested four people and charged them with orchestrating a $70 million Ponzi scheme that promised hefty returns to investors who thought their returns were coming from an investment in a virtual concierge machine. UNITED STATES OF AMERICA, Plaintiff, v. DEEPAL WANNAKUWATTE, Defendant. M.S. At times, Wanakuwatte set up fake conference calls between himself, a potential investor, and someone he falsely claimed was a VA representative. For the foregoing reasons, the Court concludes Defendant is neither terminally ill nor subject to a serious or unrecoverable condition that substantially diminishes his ability to provide self-care within a BOP facility. See U.S.S.G. Neither agreed to talk to The Bee afterward. Sundown lured investors by promising returns on short-term investments of up to 150%. Charles Ponzi would eventually serve nearly two decades in federal and state prison for that and related scams, but little did he know that his surname would one day epitomize one of the most potent weapons of financial destruction ever encountered. A .gov website belongs to an official government organization in the United States. The scheme, which spanned decades, ultimately caused at least $17 billion in losses to thousands of investors.
