Court papers show his second largest creditor is Jack Sweigart, owner of Sacramento homebuilder JTS Communities, who loaned him $19.9 million. Sweigart couldn’t be reached for comment.
His second largest creditor is the Cemo Family Charitable Foundation, which has already sued Wannakuwatte for $7.1 million. The foundation is led by Sacramento real estate executive Sammy Cemo.
Prosecutors said Wannakuwatte conned investors and banks to loan money to his medical-supply business, International Manufacturing Group, by claiming he had $100 million worth of contracts to sell latex gloves to veterans hospitals. In fact, his contracts with those hospitals came to just $25,000 a year.
U.S. Attorney Benjamin Wagner said last month that the Wannakuwatte case is “very possibly” the largest Ponzi scheme in the region’s history.
Seems to me the more government involvement in an economic sector the more opportunity for mischief.