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.
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