Under Wannakuwattes plea deal, both the government and defense recommended a 20-year prison term. Among other things, Wannakuwatte was ordered to turn over a $3 million private plane that had been pledged as collateral.. A lock () or https:// means you've safely connected to the .gov website. ) or https:// means youve safely connected to the .gov website. Wannakuwatte was born in Sri Lanka and moved to Georgia to play tennis in college. c. Petitioners Maneggie and Henley-Curtis are informed and believe and based thereon allege that on or about July 29, 2011, acting on behalf of the partnership and in furtherance of their duties and responsibilities under the MOU, defendant Deepal . 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. U.S. observes National Crime Victims Rights weekpromoting victims rights and honoring crime victims and those who advocate on their behalf. One Florida man went a bit too far in relying on the heavens for riches. Subscribe 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. Defendant also emphasizes he previously tested positive for COVID-19. Ultimately, Wannakuwatte obtained well over $230 million from his victims, some of which was returned to victims as illusory profit payments. 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. At Wannakuwattes direction, the IMG employee pretended to be a VA representative. 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. 3582(c)(1)(A) sets forth a rare exception to the general rule. Compare with Westlaw Troy L. Nunley United States District Judge ORDER This matter is before the Court on Defendant Deepal Wannakuwatte's ("Defendant") Motion for Compassionate Release Pursuant to 18 U.S.C. One of the properties Wannakuwatte hasnt yet surrendered is his West Sacramento medical company, whose assets were frozen after a group of investors sued. However, according to authorities, these claims were false. Share on Facebook Facebook The functioning of a Ponzi scheme is inherently simple. Victims are expected to recover at least 50% of their losses. Because more than 30 days have elapsed since April 23, 2020, Defendant has met the exhaustion requirement. He used investors money to pay the overstated tax returns. Today hes an admitted felon, awaiting a likely 20-year prison term, exposed as possibly the most prolific con artist in Sacramento history. /// /// /// /// /// /// /// ///. He is currently serving prison time for his offense, and these offenses might be recorded before and during prison time. And in 2012, Bank of Internet issued a $1.26 million mortgage to Deepal Wannakuwatte, a Sacramento businessman who received a 20-year prison sentence last year for operating, for more than 10 . 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. Assistant United States Attorneys Michael Beckwith and Kevin Khasigian are prosecuting the case. "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 . Defendant cites the conditions of his confinement at USP Lompoc as an additional factor in his vulnerability. Donnie Wahlberg Pokes Fun At Brother In Wahlburgers Ads, 2012-2023, 2paragraphs Productions, LLC. The views expressed in this article are those of the author(s) and do not necessarily reflect the positions or policies of the American Bar Association, the Section of Litigation, this committee, or the employer(s) of the author(s). The sentence wasnt a surprise; it matched the terms of a plea agreement Wannakuwatte made with prosecutors in May. 135.) 20. Wagner said he believes the companys assets will eventually be turned over to the bankruptcy court. 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. A .gov website belongs to an official government organization in the United States. Five of these schemes have raised at least $1 billion from investors, and Bernie Madoffs scheme is recognized as the worst Ponzi scheme in history. This included schemes from nearly every U.S. state only eight states did not record a hit on our database. Deepal Wannakuwatte. Assistant United States Attorneys Michael M. Beckwith and Kevin C. Khasigian prosecuted the case. A lock () or https:// means you've safely connected to the .gov website. Perhaps unsurprisingly, the overwhelming majority of Ponzi scheme perpetrators were males over 90%, to be exact. This ruling concludes the federal criminal prosecution; civil proceedings in the United States Bankruptcy Court are ongoing. In California, a former tennis team owner was arrested earlier this year and charged with defrauding investors out of at least $125 million through his medical equipment businesses, International Manufacturing Group (IMG) and RelyAid. 501 I Street, Suite 10-100 Jordan Maglich is a securities attorney with Wiand Guerra King P.L. 1B1.13, cmt. 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. 00:43. No Thanks 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. Another submitted a poem that called Wannakuwatte a miserable soul.. At least two of the investors were in court to watch Wannakuwatte plead guilty. In order to establish his financial credibility, Wannakuwatte showed investors his personal and corporate tax returns where he actually reported and paid taxes that falsely overstated his annual personal income and the annual gross receipts and sales for IMG. Wannakuwatte filed court papers this week saying the loss was really somewhere between $50 million and $80 million. In order to establish his financial credibility, Wannakuwatte showed investors his personal and corporate tax returns where he actually reported and paid taxes that falsely overstated his annual personal income and the annual gross receipts and sales for IMG. These claims were not true but were made in order to appear more credit worthy. The defendant offered up an apology, read aloud by his lawyer, and accepted his prison sentence in silence. Guru was arrested by Indian authorities 2012 and charged with conspiracy and cheating after the scheme unraveled. 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. (ECF No. Deepal Wannakuwatte, owner of the Las Vegas Neon, was arrested February 20 in Sacramento, Calif., on federal fraud charges, and the Neon folded on Wednesday, according to league officials at. Therefore, the Court need not address whether Defendant is a danger to the community or the 18 U.S.C. ), No. 3582 (C) (1) (A) (i). 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. {{currentYear}} American Bar Association, all rights reserved. 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. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt. 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 His partner in the Capitals, a Fair Oaks man named Ramey Osborne, wound up loaning Wannakuwatte about $456,000, according to bankruptcy court records. Police see link to similar incidents. It's time to renew your membership and keep access to free CLE, valuable publications and more. 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. VIDEO 04:01. From behind cars, Deepal Wannakuwatte tries to convince his own mother his sentencing isn't nearly as bad as it sounds. 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. The total value of the properties, vehicles, business interests, and bank accounts is estimated to be at least $3.5 million. 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. He's now serving a 20-year sentence for fraud. Mar. (ECF No. 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. He is scheduled to be arraigned on March 21, 2014. Dressed in a grubby jail-issued orange jumpsuit, Wannakuwatte, 63, pleaded guilty Thursday to a single count of wire fraud in U.S. District Court. A former owner of the Sacramento Capitals professional tennis team, Wannakuwatte purchased properties in Hawaii, Oregon and California. The loss has devastated him, according to a letter from his wife, Jayna. Interested congregants were required to invest at least $10,000 with Mr. Hibbert, and at least $8.6 million was raised from approximately 200 parishioners. The compassionate release provision of 18 U.S.C. Lock Defendant has not met his burden. However, Toronto police alleged that Hibbert did not generate the promised returns, instead using incoming investor funds to make the monthly interest payments. Fax Line:(916) 554-2900. As part of his plea agreement, Wannakuwatte will file for bankruptcy protection and forfeit more than $330,000 in bank accounts to the government, along with 16 pieces of property, including his South Land Park house and vacation homes in Hawaii, Oregon and Sonoma County. According to the Bee, Wannakuwatte, 63, had been under investigation by several federal agencies, including Veterans Affairs, the FBI, the Internal Revenue Service and the Federal Deposit. 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. 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. Gurudeo Buddy Persaud, 47, was arrested and charged with operating a Ponzi scheme that promised risk-free returns derived from investing in the futures markets and other markets. If convicted, Wannakuwatte faces a maximum sentence of 30 years in prison and a $1million fine for each count. Among his victims were banks, an Indian tribe in Washington state, as well as roughly 150 individuals. Subscribe 1B1.13. Deepal Wannakuwatte took in more than $125 million over the past decade from investors who were financing contracts to supply gloves to the U.S. Department of Veterans Affairs, according to an FBI . In sentencing Wannakuwatte, Judge Nunley told the defendant, You embody true evil. To create the appearance of a successful business, Wannakuwatte is accused of doctoring actual invoices with significant markups. emailStay Connected FBI.gov is an official site of the U.S. Department of Justice. Deepal Wannakuwatte and Betsy are not now, and never have been, members or owners of Sunfire. See https://www.cdc.gov/coronavirus/2019-ncov/need-extra-precautions/groups-at-higher-risk.html (listing pulmonary hypertension but not essential (primary) hypertension and indicating those with hypertension should manage their blood pressure by taking medication as directed) (last visited July 22, 2020). Wannakuwatte used this to fund other business ventures, make adequate payments to his investors and lenders to keep the scam going, and line his own pockets. Share sensitive information only on official, secure websites. Many of the victims will never be made whole, Wagner said. 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. 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. 24, 2020). No Thanks Wannakuwatte, dressed in his orange Sacramento County jailhouse uniform, sat at the defense table and stared at the floor as Ashley berated him. On June 18, 2020, Defendant filed the instant pro se motion for release pursuant to 18 U.S.C. 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. Assistant United States Attorney Michael M. Beckwith is prosecuting the case.
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