- Mexican train carrying 1,300 migrants headed toward U.S. derails
- Secret Service begins regular K-9 patrols around White House
- Pentagon’s human memory-chip program moves forward
- Obama blasts GOP, ignores immigration crisis in Texas speech
- Marine Warfighting Lab tests the Godzilla of amphibious assault vehicles
- Harry Reid: Birth-control ruling the worst Supreme Court decision in 25 years
- Vet suicides ‘horrible human cost’ of VA dysfunction: lawmaker
- First marijuana customer in Spokane says he was fired
- Hagel: ‘Make no mistake,’ ISIL is an ‘imminent’ threat to U.S.
- Armed militia sets up Texas command center to ‘fight for national sovereignty’
Owner of Sacramento firms accused of fraud
Question of the Day
SACRAMENTO, Calif. (AP) - The owner of two Northern California medical-supply businesses was arrested on charges that he ran a $100 million-dollar-plus Ponzi scheme to keep his firms afloat.
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 affidavit reported by The Sacramento Bee (http://bit.ly/1cHlclA ) on Sunday.
Wannakuwatte, 63, told investors that his company, International Manufacturing Group Inc., had VA contracts totaling $100 million a year, but actual sales came to just $25,000 a year, according to the affidavit. It alleges that Wannakuwatte was running a Ponzi scheme, paying investors not with profits from his glove contracts but with money provided by other investors.
He was arrested last week and appeared before U.S. Magistrate Judge Carolyn Delaney in Sacramento on Friday. A call to his attorney, Donald Heller, on Monday was not immediately returned.
International Manufacturing and Wannakuwatte’s other West Sacramento company, RelyAid Global Healthcare Inc., were sued by business lender General Electric Capital Corp. last August after allegedly defaulting on a $4.6 million debt related to a latex glove factory RelyAid planned to build in Yuba County, according to the Bee.
The lawsuit is pending in federal court in Sacramento, and a judge ordered Wannakuwatte on Wednesday to give GE a $3 million private King Air plane that had been pledged as collateral, the Bee reported.
Information from: The Sacramento Bee, http://www.sacbee.com
TWT Video Picks
By Ken Allard
Only the National Guard can re-establish homeland security
- Armed militia sets up Texas command center to 'fight for national sovereignty'
- HUSAIN: The fake caliph of 'The Islamic State'
- IRS employee suspended for pro-Obama activities
- Va. Democrat reportedly seeks nude shots of Kendall Jones
- Amid border crisis, Obama to take 15-day vacation in Martha's Vineyard
- ISTOOK: Flying illegals home would be 99.5 percent cheaper than Obamas plan
- HUSAR: Mexicos Pena Nieto passes the immigration bucket
- Illegal immigrants showing up at border with 'Yes we can' Obama shoes: report
- GOP: Lerner warned IRS employees to hide information from Congress
- Sgt. Andrew Tahmooressi denied freedom by Mexican judge
Obama's biggest White House 'fails'
Celebrities turned politicians
Athletes turned actors
20 gadgets that changed the world
Fighting in Iraq
World Cup's sexiest WAGs
U.S.-Ghana World Cup opener