The warden denied Defendant's request on May 13, 2020. 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. And while Wanakuwatte made payments to some of the earlier investors as a way of pacifying them, eventually the scam began to implode as more investors and lenders wanted what was owed them and Wanakuwatte couldnt make the payments. 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 Benjamin B. Wagner announced today. ), No. In total, Sundown raised more than $7 million from over 150 investors. 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. Based on the false representations, Bridge Bank authorized a line of credit worth $4.5 million. 3553(a) (" 3553(a)") factors do not support a reduced sentence. The American Greed episode Medical Gloves with Holes tells the story of Deepal Wannakuwatte. 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. One of the ways investors were solicited to invest with JCS Enterprises was through the placement of videos on YouTube. To date, prosecutors have obtained at least 14 convictions including a guilty plea from Madoffs brother, Peter Madoff. From 2002 until his arrest in February 2014, Wannakuwatte defrauded between 150 and 200 individuals, companies, and government entities out of $230,000,000 through a classic Ponzi scheme. Defendant is 69 years old and claims he is particularly vulnerable to COVID-19 because he suffers from multiple medical conditions, including serious lung disorders, a severely compromised immune system, hypertension, and gastrointestinal bleeding. For instance: Also interesting: The correlation of Ponzi schemes uncovered to the financial crisis is arguably strong. Bernie Madoffs scam was merely one of more than 500 Ponzi schemes of $1 million or more that collectively involved over $50. As the economy deteriorated, efforts by investors to withdraw money from their once-trusted financial advisers combined with the decrease in new investors collapsed many of the schemes. 3582 (C) (1) (A) (i). Deepal Wannakuwatte - 1 Criminal record(s) found. FBI.gov is an official site of the U.S. Department of Justice. - Check with a trusted financial adviser, broker, or attorney about any investments you are considering. Deepal, you are a sociopath, he said. The Government also submits Defendant's BOP medical records filed under seal which do not include any information about Defendant's claimed serious lung disorders, severely compromised immune system, or gastrointestinal bleeding. Prosecutors said at least 100 individuals and corporations were victimized by Wannakuwatte. Deepal Wannakuwatte, owner of the Las Vegas Neon, was arrested Thursday in Sacramento, Calif., on federal fraud charges. 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. Heller denied that. 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. 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. All rights reserved. 10 of the World's Craziest Ponzi Schemes | InvestorPlace Bankruptcy trustee sues victims of massive Sacramento Ponzi scheme In sum, the Court DENIES Defendant's request for compassionate release because Defendant has not met his burden to show there are extraordinary and compelling reasons for his release. 135.) 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. The sentence wasnt a surprise; it matched the terms of a plea agreement Wannakuwatte made with prosecutors in May. . Owner of Las Vegas WTT franchise arrested on federal fraud charges As the Government points out, the CDC has not listed essential (primary) hypertension as a condition that puts individuals at a higher risk of severe illness. The letter was read aloud by Assistant U.S. Attorney Kevin Khasigian. (ECF No. This included schemes from nearly every U.S. state only eight states did not record a hit on our database. Based on these representations, IMG and RelyAid raised at least $125 million from numerous investors. In total, the venture raised over $10 million from at least 40 investors. . 3582(c)(1)(A) sets forth a rare exception to the general rule. VIDEO 04:01. It isnt known how much the company is worth. His assets will be liquidated to repay victims of a $150 million Ponzi scheme, and even the tennis team is gone, killed off by the league. No matter the type, a Ponzi scheme has a predictable and inevitable dire outcome, but some are certainly more notable than others. 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. (ECF No. 3582(c); see Dillon v. United States, 560 U.S. 817, 824-25 (2010). Assistant United States Attorney Michael M. Beckwith is prosecuting the case. American Greed airs Thursdays at 10pm on CNBC. 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. Troy L. Nunley United States District Judge, This matter is before the Court on Defendant Deepal Wannakuwatte's ("Defendant") Motion for Compassionate Release Pursuant to 18 U.S.C. Full title:UNITED STATES OF AMERICA, Plaintiff, v. DEEPAL WANNAKUWATTE, Defendant. 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. 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. There, the judge said, Deepal, you are a sociopath. Casetext, Inc. and Casetext are not a law firm and do not provide legal advice. 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. Follow him on Twitter @dakasler. Put another way, a Ponzi scheme was uncovered, on average, once every four days from 2008 to 2013. In what is believed to be a first, criminal charges were brought against a Massachusetts husband, wife and son based on charges the trio operated a Ponzi scheme that duped investors out of at least $10 million. Modelled Employees (all sites): ? Rocco was formerly the president of the Dix Hills Soccer Club, where he enjoyed exclusive access to company bank accounts. Persaud is currently serving a three-year sentence in federal prison. . 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. M.S. Owner of Sacramento firms accused of fraud - kcra.com However, Toronto police alleged that Hibbert did not generate the promised returns, instead using incoming investor funds to make the monthly interest payments. 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. Wannakuwatte has been in custody since his arrest on February 21, 2014. Secure .gov websites use HTTPS 3582(c)(1)(A). "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 . 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. 3582(C)(1)(A)(i). No Thanks Former Owner Of Sacramento Capitals Tennis Team Pleads Guilty To $50 Your membership has expired - last chance for uninterrupted access to free CLE and other benefits. The three later entered into plea agreements with prosecutors, resulting for prison terms for the husband and son and a suspended sentence for the wife. Michael Hooper, a Carmichael man who lost more than $200,000, recalled how Wannakuwatte ingratiated himself with his victims. The. And after several months of reviewing more than 10 years worth of business records, analyzing tax and other financial documents, conducting interviews of employees and victims, serving search warrants, etc., law enforcement was able to piece together how the scam worked. You are a liar, a serial liar. Get FBI email alerts From behind cars, Deepal Wannakuwatte tries to convince his own mother his sentencing isn't nearly as bad as it sounds. He further avowed that these companies had annual revenues in the tens of millions of dollars. And he did a have contract with the VA, but it was only for up to $25,000 a year. Wannakuwattes companies, IMG and Relyaid, were involved in the international manufacture, shipment, and distribution of latex gloves.
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