FBI Brings Securities Fraud Charges in $125 Million Medical Glove Scheme

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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 [email protected] 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.  Please note that the prior results discussed herein do not guarantee similar outcomes.

Hamilton & Associates | Securities Lawyers
Brenda Hamilton, Securities Attorney
101 Plaza Real South, Suite 202 North
Boca Raton, Florida 33432
Telephone: (561) 416-8956
Facsimile: (561) 416-2855
www.SecuritiesLawyer101.com