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Owner of Sacramento firms indicted for fraud

SACRAMENTO, Calif. (AP) -- The owner of two Northern California medical-supply businesses has been indicted on charges that he ran a $100 million-dollar-plus Ponzi scheme to keep his firms afloat.

The Sacramento Bee (http://bit.ly/1ikPlJO ) reports Deepal Wannakuwatte faces charges of bank fraud and false statements to a financial institution.

According to the indictment unsealed Thursday, Wannakuwatte secured a line of credit from San Jose-based Bridge Bank by overstating the creditworthiness of his businesses.

The indictment says Wannakuwatte falsely told the bank his West Sacramento companies, International Manufacturing Group and RelyAid Global Healthcare, did more than $100 million of business every year with the U.S. Department of Veterans Affairs.

He was arrested last month. An affidavit alleges Wannakuwatte was running a Ponzi scheme, paying investors not with profits from his glove contracts but with money provided by other investors.

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Information from: The Sacramento Bee, http://www.sacbee.com

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