Subscribe Next: M.S. An official website of the United States government. Defendant is currently serving his sentence at USP Lompoc. When Hoopers mother died four years ago, Wannakuwatte attended the funeral. 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. On November 13, 2014, this Court sentenced Defendant to a 240-month term of imprisonment followed by a 36-month term of supervised release. Share sensitive information only on official, secure websites. Sacramento, CA. The loss has devastated him, according to a letter from his wife, Jayna. On November 13, 2014, United States District Judge Troy L. Nunley sentenced Wannakuwatte to 20 years in prison and ordered him to forfeit multiple properties, vehicles, business interests, and bank accounts totaling at least $3.5 million to be used to provide restitution to victims. Another submitted a poem that called Wannakuwatte a miserable soul.. Next: A Virtual Concierge Ponzi Scheme With A Shark Tank Link. - 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. Wannakuwatte has filed for bankruptcy protection. The total value of the properties, vehicles, business interests, and bank accounts is estimated to be at least $3.5 million. We found 1 criminal records from the federal database for Deepal Wannakuwatte. Deepal Wannakuwatte, owner of the Las Vegas Neon, was arrested Thursday 1343. 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. With the millions he collected, Wannakuwatte - a former owner of the now defunct Sacramento Capitals professional tennis team - bought real estate in Hawaii, Oregon and California. One of the properties Wannakuwatte hasnt yet surrendered is his West Sacramento medical company, whose assets were frozen after a group of investors sued. The warden denied Defendant's request on May 13, 2020. 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. Wannakuwatte has been in custody since his arrest on February 21, 2014. 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. Next: A Pastor And a $9 Million Foreign Currency Ponzi Scheme. 501 I Street, Suite 10-100 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. This story was originally published May 8, 2014, 12:11 PM. In 2014, the. The cities are Baton Rouge LA, Carson City NV, Chicago IL, El Dorado Hills CA, Phoenix AZ, Sacramento CA, Seattle WA, Sequim WA, W Sacramento CA, and West Sacramento CA. Deepal Wannakuwatte Profiles in AZ, CA, IL, LA, NV, and WA - Bizapedia (ECF No. Wagner said its still operating, although at a far lower volume than what Wannakuwatte had represented to investors. The legitimate part of IMG had been losing money for years, and Wannakuwatte used some of the proceeds of his Ponzi scheme to keep the company afloat. Marlon Gary Hibbert and Verna Hibbert were charged with 38 criminal counts in mid-2013 by Toronto police, who alleged that the pair lived a luxurious lifestyle by misappropriating investor funds. To date, Madoffs victims have recovered nearly 50% of their losses through the trustees efforts, and this number is expected to increase. An Internet Mortgage Provider Reaps the Rewards of Lending Boldly The Court is mindful that people with certain medical conditions, including hypertension, can be more vulnerable to COVID-19. Have a question about Government Services? After their release from prison, the trio formed Sundown Entertainment Inc. (Sundown), which purported to specialize in the distribution of film and comic-book rights. Article printed from InvestorPlace Media, https://investorplace.com/2014/05/cheated-ponzi-schemes-bernie-madoff/. 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 Copyright Nunley was unsparing as well, calling Wannakuwatte a liar and adding: Youre an evil person, theres no way you can get around that.. 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. In fact, while he did have a contract with the VA, it was only worth up to $25,000 a year. On February 4, 2014, the Capitals, after 28 seasons in Sacramento, announced their move to Las Vegas. 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. This case is the product of an investigation by the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation. {{currentYear}} American Bar Association, all rights reserved. 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: ? by 2Paragraphs in Culture | August 17, 2016, Deepal Wannakuwatte, American Greed (CNBC). at 4.) Zions Bank accused of facilitating fraud in California Ponzi scheme See U.S.S.G. It is also encouraging that Defendant recovered without any documented complications. The letter was read aloud by Assistant U.S. Attorney Kevin Khasigian. Police see link to similar incidents. And he did a have contract with the VA, but it was only for up to $25,000 a year. 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. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. A locked padlock 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." A thief, a serial thief.. n. 1(A). Share on Facebook Facebook FBI.gov is an official site of the U.S. Department of Justice. We are pleased to have played a part in bringing Mr. Wannakuwatte to justice and value our cooperative working relationships with the U.S. Attorneys Office, FBI, and IRS-CI.. Under Wannakuwattes plea deal, both the government and defense recommended a 20-year prison term. One of the ways investors were solicited to invest with JCS Enterprises was through the placement of videos on YouTube. The bank settled the charges by paying over $2 billion in penalties. (ECF No. In fact, there were no such invoices, and no such debt was owed by the VA to IMG. Deepal Wannakuwatte, owner of the Las Vegas Neon, was arrested Thursday in Sacramento, Calif., on federal fraud charges. 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. He used investors money to pay the overstated tax returns. ) or https:// means youve safely connected to the .gov website. 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. He essentially overpaid, using the victims money, said U.S. Attorney Benjamin Wagner at a news conference following Wannakuwattes court appearance. With the millions he collected, Wannakuwatte a former owner of the now defunctSacramento Capitals professional tennis team bought real estate in Hawaii, Oregon and California. Defaults against these defendants were entered on April 21, 2014. Sundown lured investors by promising returns on short-term investments of up to 150%. Prosecutors have said the net loss to investors came to $109 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. 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. Donnie Wahlberg Pokes Fun At Brother In Wahlburgers Ads, 2012-2023, 2paragraphs Productions, LLC. 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. Email Email. (ECF No. 3582(c)(1)(A)(i). However, the payment of these returns is made not from legitimate business activities, but rather from incoming funds from new investors. This ruling concludes the federal criminal prosecution; civil proceedings in the United States Bankruptcy Court are ongoing. 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. Perhaps unsurprisingly, the overwhelming majority of Ponzi scheme perpetrators were males over 90%, to be exact. A .gov website belongs to an official government organization in the United States. Deepal Wannakuwatte. When incoming investor funds were not enough to sustain the growing obligations to existing investors, the scheme collapsed and Susi Emu Farm executives fled town. Deepal Wannakuwatte, owner of the Las Vegas Neon, was arrested February 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. Even when excluding the three largest Ponzi schemes, the average scheme size was still $43.3 million. 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. UNITED STATES OF AMERICA, Plaintiff, v. DEEPAL WANNAKUWATTE, Defendant. Assistant United States Attorneys Michael Beckwith and Kevin Khasigian are prosecuting the case. Yet, instead of informing investors of the situation, Sundown continued to solicit new investments. At least 385 of the perpetrators were sent to prison, with a total of nearly 5,000 years of cumulative prison sentences handed down. 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 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. U.S.S.G. 3582(C)(1)(A)(i). 1125 N. Charles St, Baltimore, MD 21201. However, there were very few legitimate loans, and the Palladinos paid the advertised interest by simply using funds from new investors. The team was renamed the Las Vegas Neon. After the arrest, the franchise was disbanded by World TeamTennis. Fri, Aug 12 2016 4:30 PM EDT. Former Owner Of Sacramento Capitals Tennis Team Pleads Guilty To $50 This case should serve as a warning to those thinking of committing fraud., FDIC OIG Special Agent in Charge Wade V. Walters stated, The sentencing of Mr. Wannakuwatte today reflects fitting punishment for a fraud scheme that victimized so many trusting individuals, businesses, government agencies, financial institutions, and others. 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. Instead, Rocco was accused of operating a Ponzi scheme that used investor funds to pay returns. Because more than 30 days have elapsed since April 23, 2020, Defendant has met the exhaustion requirement. Heller denied that. Joseph W. Martini, Wiggin and Dana LLP, Stamford, CT. 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. Theres no way I can make the victims whole, Nunley said. emailStay Connected - Be wary of an investment opportunity that offers unusually high yields. Take the time to do your own research on the investments potentialand on the person making the offer. The rebranded Las Vegas Neon went defunct almost immediately after his arrest. Wannakuwatte, dressed in his orange Sacramento County jailhouse uniform, sat at the defense table and stared at the floor as Ashley berated him. Subscribe 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. 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. [3] See also [ edit] Tennis portal Former Sacramento Capitals owner fires lawyer; sentencing postponed California Schemin' - Utah Stories The total losses to investor victims exceeds $100 million. ), No. Convicted Sacramento Businessman Ordered to Pay More Than $108 Million American Bar Association After his arrest, the World TeamTennis league revoked his franchise and disbanded the team. Defendant did not file a reply. 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. Website: www.ismiledentalproducts.com Employees (this site): ? From behind cars, Deepal Wannakuwatte tries to convince his own mother his sentencing isn't nearly as bad as it sounds. Wannakuwatte was sentenced to 20 years in prison after an emotional sentencing hearing on November 13, 2014. Casetext, Inc. and Casetext are not a law firm and do not provide legal advice. The case against Deepal Wannakuwatte was already one for the books: a successful immigrant businessman, owner of a professional tennis team, admitting he had perpetrated one of the largest Ponzi. Jul. He used investors money to pay the overstated tax returns. 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. 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. quotes delayed at least 15 minutes, all others at least 20 minutes. 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. Subscribe And hell be doing that from his jail cell, where hell be serving out his 20-year sentence. 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. A North Carolina company known as ZeekRewards, or Zeekler, solicited investors worldwide to participate in its penny-auction business where participants could bid on popular merchandise in 1-cent increments. Your membership has expired - last chance for uninterrupted access to free CLE and other benefits. 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 This information or any portion thereof may not be copied or disseminated in any form or by any means or downloaded or stored in an electronic database or retrieval system without the express written consent of the American Bar Association. Ultimately, Wannakuwatte obtained well over $230 million from his victims. The scheme, which spanned decades, ultimately caused at least $17 billion in losses to thousands of investors. Defendant requests the Court reduce his term of imprisonment due to the COVID-19 pandemic. 135. Ultimately, Wannakuwatte obtained well over $230 million from his victims. Wagner said he believes the companys assets will eventually be turned over to the bankruptcy court. 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. Ultimately, Wannakuwatte obtained well over $230 million from his victims, some of which was returned to victims as illusory profit payments. Jordan Maglich is a securities attorney with Wiand Guerra King P.L. Investors are promised above-average returns that generally carry little risk. Owner of Sacramento firms accused of fraud - kcra.com Losses incurred by the victim financial institutions often threatened their financial stability and reputations. As it is, the Court has no way of knowing the extent of Defendant's hypertension, and Defendant fails to provide any evidence to confirm the existence or extent of his other alleged medical conditions. In that position, Rocco solicited club members to invest in his company, Limestone Capital Services, which they were told provided wholesale financing of cigarette purchases for a tobacco shop located on the Shinnecock Native American Reservation. However, according to authorities, these claims were false. Additionally, Hibbert and his wife diverted investor funds for their own personal use, including the purchase of luxury automobiles and real estate. Share sensitive information only on official, secure websites. For the foregoing reasons, the Court hereby DENIES Defendant's Motion for Compassionate Release Pursuant to 18 U.S.C. 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In opposition, the Government argues the Court should deny Defendant's motion because Defendant failed to demonstrate extraordinary and compelling reasons to warrant release, he is a continuing danger to the community, and the 18 U.S.C. 95814, Telephone:(916) 554-2700 Secure .gov websites use HTTPS 3582(C)(1)(A)(i). The compassionate release provision of 18 U.S.C. 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. Unfortunately, it wasnt. The sentence wasnt a surprise; it matched the terms of a plea agreement Wannakuwatte made with prosecutors in May. 24, 2020). We thank the IRS Criminal Investigation and FDIC Office of Inspector General for their partnership throughout this investigation. 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. . Rather than having annual sales of $100 million, it appeared that annual sales were closer to $25,000. Promptly, on the next day, the pending motions to set aside the defaults were filed. At Wannakuwattes direction, the IMG employee pretended to be a VA representative. More specifically, the "extraordinary and compelling" requirement is met where a defendant is: (i) suffering from a terminal illness; or (ii) suffering from a serious physical or medical condition, serious functional or cognitive impairment, or deteriorating physical or mental health because of the aging process, "that substantially diminishes the ability of the defendant to provide self-care within the environment of a correctional facility and from which he or she is not expected to recover." 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. Over twelve years (2002 to 2014), Wannakuwatte convinced several investors that their money was financing RelyAid Global Healthcare, a manufacturer of latex medical gloves which Wannakuwatte claimed had $125 million worth of contracts with the U.S. Department of Veterans Affairs. Because of the length of the scheme, nearly half of Madoffs investors ended up receiving cumulative interest payments exceeding their total investment. In the instant case, it is undisputed that Defendant has met the threshold exhaustion requirement. In total, nearly 5,000 investors invested in Madoffs scheme. BOP records do, however, confirm Defendant has been diagnosed with essential (primary) hypertension. watch now. 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. Assistant United States Attorney Michael M. Beckwith is prosecuting the case. (Id.) U.S. v. WANNAKUWATTE | No. 2:14-CR-00067 TLN. | 20150330854| Leagle.com No Thanks 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.
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