Founder of Beverage Company Faces Federal Fraud Charges for Allegedly Defrauding Investors of Over $3.4 Million

Todd O’Gara Accused of Using Fake Documents and Lies to Solicit and Maintain Investments

Austin, TX – Todd O’Gara, the 44-year-old founder and executive chairman of the beverage company Wanu Water, Inc., appeared in federal court today facing charges of wire fraud. The complaint alleges that O’Gara defrauded individual investors of at least $3.4 million by fabricating purchase orders, faking private equity investments, and sending doctored documents to solicit funds and maintain investor confidence.

O’Gara was charged with one count of wire fraud and appeared before U.S. Magistrate Judge Dustin Howell in Austin federal court. If convicted, he faces a maximum penalty of 20 years in prison and a fine of up to $250,000—or twice the gross gain or loss resulting from the fraud, whichever is greater.

Allegations of Deception

According to court documents and statements made during the hearing, O’Gara engaged in a calculated scheme to mislead investors about the financial health and growth prospects of Wanu Water, a company he founded and managed. Prosecutors allege that O’Gara:

• Falsified Purchase Orders: Inflated or fabricated the size of purchase orders from retailers to project the appearance of robust demand for the company’s products.
• Invented Investments: Claimed major private equity firms had invested in the company, providing false assurance of financial stability and growth potential.
• Forged Documents: Sent investors doctored emails and forged term sheets to substantiate his false claims, creating a deceptive paper trail.

These tactics allegedly encouraged investors to contribute millions of dollars and persuaded them to retain their investments under false pretenses.

The charge of wire fraud is serious, carrying a potential sentence of up to 20 years in prison. The case underscores the importance of transparency and honesty in investor relations, especially in industries where early-stage funding is critical for growth.

The investigation remains active, and authorities believe there may be additional victims. U.S. Attorney Sellinger urged anyone with information related to the scheme to contact the FBI’s Newark Field Division at newark-victim_assistance@fbi.gov.

The case is being handled by the Economic Crimes Unit of the U.S. Attorney’s Office in Newark, with Assistant U.S. Attorneys Aaron L. Webman and Carolyn Silane leading the prosecution. The investigation was conducted by the FBI, under the direction of Acting Special Agent in Charge Nelson I. Delgado of the Newark Field Division.

The allegations against O’Gara highlight the growing prevalence of financial fraud schemes targeting individual investors. The case serves as a stark reminder for investors to exercise due diligence and verify claims made by businesses, particularly startups in high-growth industries like food and beverage.

Experts recommend steps such as:

• Requesting Independent Verification: Investors should seek third-party audits or documentation to corroborate financial claims.
• Monitoring Company Performance: Regularly reviewing company updates and comparing them to market trends can help identify inconsistencies.
• Consulting Legal and Financial Advisors: Professional advice can provide critical insights into the legitimacy of investment opportunities.

What’s Next for O’Gara?

As the case unfolds, O’Gara’s legal team will have the opportunity to respond to the charges. Meanwhile, the FBI continues to investigate, leaving open the possibility of additional charges or defendants being named in the scheme.

The court has not yet set a trial date. In the meantime, O’Gara is presumed innocent unless and until proven guilty in a court of law.

If you have information related to this case or believe you may be a victim, contact the FBI at newark-victim_assistance@fbi.gov. Transparency and cooperation are key to addressing financial fraud and protecting others from similar schemes.

This developing story serves as a sobering reminder of the risks and responsibilities in investment. Stay tuned for updates as legal proceedings continue.