Deepal Wannakuwatte, 63, has been arrested and charged with operating a massive Ponzi scheme that raised over $125 million from investors who believed they were investing in a company that had valuable contracts to supply gloves to the U.S. Department of Veterans Affairs.
According to the FBI,Wannakuwatte told investors that his company, International Manufacturing Group Inc., had contracts worth $100 million a year. In reality, the Company’s revenues were approximately $25,000 a year.
The FBI alleges that Wannakuwatte was running a Ponzi scheme, paying investors not with revenues from the government glove contracts but with money provided by other investors.
Last year, International Manufacturing and RelyAid Global Healthcare Inc. , were sued by business lender General Electric Capital Corp. The General Electric suit came after allegedly defaulting on a $4.6 million debt related to a latex glove factory RelyAid purportedly planned to build in Yuba County, California.
For further information about this securities law blog post, please contact Brenda Hamilton, Securities Attorney at 101 Plaza Real S, Suite 202 N, Boca Raton Florida, (561) 416-8956, by email at firstname.lastname@example.org or visit www.securitieslawyer101.com.
This securities law blog post is provided as a general informational service to clients and friends of Hamilton & Associates Law Group and should not be construed as, and does not constitute, legal and compliance advice on any specific matter, nor does this message create an attorney-client relationship. For more information concerning the rules and regulations affecting the use of Rule 144, Form 8K, FINRA Rule 6490, Rule 506 private placement offerings, Regulation A, Rule 504 offerings, SEC reporting requirements, SEC registration on Form S-1 and Form 10, Pink Sheet listing, OTCBB and OTCMarkets disclosure requirements, DTC Chills, Global Locks, reverse mergers, public shells, go public direct transactions and direct public offerings please contact Hamilton and Associates at (561) 416-8956 or email@example.com. Please note that the prior results discussed herein do not guarantee similar outcomes.