He used investors money to pay the overstated tax returns. All rights reserved. The total value of the properties, vehicles, business interests, and bank accounts is estimated to be at least $3.5 million. Hes owed the refunds, ironically, because he deliberately overpaid his taxes in order to lull his victims into complacency by showing them IRS returns with vastly inflated incomes. Former Owner Of Sacramento Capitals Tennis Team Sentenced To 20 Years Indeed, while Madoff involved several thousand investors, the court-appointed receiver in ZeekRewards announced that he had received proof of claim forms from over 174,000 victims. A lock () or https:// means you've safely connected to the .gov website. 501 I Street, Suite 10-100 The scheme, which spanned decades, ultimately caused at least $17 billion in losses to thousands of investors. Deepal, you are a sociopath, he said. Your membership has expired - last chance for uninterrupted access to free CLE and other benefits. If convicted, Wannakuwatte faces a maximum sentence of 30 years in prison and a $1million fine for each count. 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. 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. We thank the IRS Criminal Investigation and FDIC Office of Inspector General for their partnership throughout this investigation. Prosecutors have said the net loss to investors came to $109 million. 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. Owner of Las Vegas WTT franchise arrested on federal fraud charges He further avowed that these companies had annual revenues in the tens of millions of dollars. An official website of the United States government. Wannakuwatte was sentenced to 20 years in prison after an emotional sentencing hearing on November 13, 2014. American Bar Association "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 . Kamir Abou Najm performed research work for the universitys Miller Lab, which studies early signs of autism and ADHD. 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. Former Sacramento Capitals team owner pleads guilty to fraud; faces 20 California Schemin' - Utah Stories 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. 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. He said Wannakuwatte spent the money on personal and business expenses. 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.