400 Yuba County Jobs Gone After Business Owner Accused Of Ponzi Scheme

YUBA COUNTY (CBS13) — A Sacramento businessman’s arrest for alleged fraud is leading to fallout in Yuba County as plans for a manufacturing plant he promised have suddenly stopped.

The big warehouse was a place of big hopes for the county, but now it’s just a big reminder of what might have been.

“We felt very comfortable working with them, and that they were moving forward,” said Yuba County Administrator Robert Bendorf.

He’s a former sheriff’s deputy who also investigated fraud, and he never saw this coming.

Deepal Wannakuwatte told Yuba County he was going to start making his gloves in what would become Yuba County’s largest manufacturing plant and create as many as 400 jobs.

Now he’s behind bars, accused of running a ponzi scheme and taking as much as $125 million from investors with lies.

Federal court documents show just last month he was altering paperwork orders and whiting out sections. The final version would show an invoice for $12 million in gloves, when the original invoice was just $257.

So now a region already struggling with double-digit unemployment won’t be seeing those hundreds of jobs.

More from Steve Large

Leave a Reply

Fill in your details below or click an icon to log in:

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More From CBS Sacramento

Tickets to aftershock now on sale
Follow Us On Facebook

Listen Live