However, relief under 18 U.S.C. The Sentencing Commission's relevant policy statement on compassionate release identifies medical conditions that satisfy the "extraordinary and compelling" requirement. - 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. 20.) 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. Article printed from InvestorPlace Media, https://investorplace.com/2014/05/cheated-ponzi-schemes-bernie-madoff/. 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. Gurus Emu-Raising Ponzi Scheme. DEEPAL WANNAKUWATTE, Defendant. 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. Persaud is currently serving a three-year sentence in federal prison. 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. 2:14-cr-00067-TLN (E.D. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt. Deepal Wannakuwatte. Another submitted a poem that called Wannakuwatte a miserable soul.. 135.) Defendant Deepal Wannakuwatte has pleaded guilty to running a massive Ponzi scheme and agreed to forfeit various assets connected to that fraud scheme, including sixteen real properties, four vehicles, twenty-one bank accounts, three life insurance policies, seven checks/money orders and two partnership interests. 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. No Thanks 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. Sundown lured investors by promising returns on short-term investments of up to 150%. 3582(c)(1)(A) sets forth a rare exception to the general rule. Defendant did not file a reply. However, according to authorities, these claims were false. 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: ? 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. 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. 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. Official websites use .gov Deepal Wannakuwatte - Bio, News, Photos - Washington Times To work, or not, on the Sabbath Gerald Groff shares his story with Alex New Episode: American sovereignty is in peril Frank Gaffney. UNITED STATES OF AMERICA, Plaintiff, v. DEEPAL WANNAKUWATTE, Defendant. Shortly before Wannakuwatte was arrested, the team announced it was moving to Las Vegas. 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. One of the properties Wannakuwatte hasnt yet surrendered is his West Sacramento medical company, whose assets were frozen after a group of investors sued. In truth, the government contracts were worth only $25,000. 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. Cal. 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. Court records show that the companys revenue last year totaled less than $5 million. D & A INTERNATIONAL IMPORT . 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. Wannakuwattes decadelong crime constitutes very possibly the largest Ponzi scheme in the regions history, Wagner said. 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. Red flags, copy-with-cite, case summaries, annotated statutes and more. Next: A Pastor And a $9 Million Foreign Currency Ponzi Scheme. Nine of his victims made statements to the court, either in person or by letters read out loud by the prosecutor. /// /// /// /// /// /// /// ///. - Check with a trusted financial adviser, broker, or attorney about any investments you are considering. Instead, Rocco was accused of operating a Ponzi scheme that used investor funds to pay returns. Secure .gov websites use HTTPS RelyAid did have one contract with the Department but it was worth only $25,000. This equates to roughly $6.3 billion per year of investor wealth lost to Ponzi schemes or nearly the annual GDP of Africas Republic of Niger. 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 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. Share on Twitter Twitter Since 2008, at least 500 Ponzi schemes were uncovered worldwide, including Bernard Bernie Madoffs legendary $17 billion scheme. 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. For example, a $257 invoice was modified to create a $12 million invoice. Prosecutors said at least 100 individuals and corporations were victimized by Wannakuwatte. A lock () or https:// means you've safely connected to the .gov website. 138.) 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. 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. The bank settled the charges by paying over $2 billion in penalties. A .gov website belongs to an official government organization in the United States. Finally, the toll on the criminal justice system is also noteworthy. 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. 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. 501 I Street, Suite 10-100 Therefore, the Court need not address whether Defendant is a danger to the community or the 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. 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. Viking advertised itself as operating a high-yield, low-risk investment strategy that offered above-average returns by making secured loans to borrowers at inflated interest rates. He will also surrender $8 million to $12 million worth of federal income tax refunds. Prosecutors said he persuaded his victims to invest in his West Sacramento medical supply company, International Manufacturing Group, by telling them he had contracts worth $100 million to sell latex gloves to veterans hospitals. Assistant United States Attorneys Michael M. Beckwith and Kevin C. Khasigian prosecuted the case. While the forfeitures will go toward restitution, the remainder of the roughly $105,000,000 will be paid back at a minimum rate of a mere $25.00 per quarter during the course of his incarceration. 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. 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. 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. Website: www.ismiledentalproducts.com Employees (this site): ? - Dont believe everything youre told. According to prosecutors, Wannakuwatte duped individual investors and professional bankers alike into pouring $150 million into the company over the past decade or so. 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. Investors were told that an investment in JCS Enterprises involved the purchase of a virtual concierge machine (VCM) that resembled an automatic teller machine and allowed users to view advertisements for products or services. 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. 501 I Street, Suite 10-100 The case is tied to his medical-supply business, International Manufacturing Group. Subscribe (ECF No. emailStay Connected The rebranded Las Vegas Neon went defunct almost immediately after his arrest. 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. A hearing has been set for Jan. 15 to sort out the discrepancy. He essentially overpaid, using the victims money, said U.S. Attorney Benjamin Wagner at a news conference following Wannakuwattes court appearance. 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. 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. Modelled Revenue: # Wannakuwattes companies, IMG and Relyaid, were involved in the international manufacture, shipment, and distribution of latex gloves. . 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. Perhaps unsurprisingly, the overwhelming majority of Ponzi scheme perpetrators were males over 90%, to be exact. The Court acknowledges USP Lompoc has had one of the worst COVID-19 outbreaks of any federal prison. 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. Get FBI email alerts 3582(c)(1)(A) (requiring a consideration of the 3553(a) factors before granting compassionate release). Many of the victims will never be made whole, Wagner said. His firm, Madoff Investment Securities LLC, offered consistent annual returns averaging 10% through a purported strategy that combined the purchase of blue-chip equities and corresponding options.
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