Todd O’Gara, the founder and executive chairman of Wanu Water, Inc., stands accused of orchestrating a sophisticated investment fraud that netted approximately $3.4 million from individual investors through a series of calculated lies and fabricated documents, federal prosecutors allege.

According to a detailed FBI criminal complaint, O’Gara systematically misled investors between August 2019 and May 2023, weaving an intricate web of false claims about his company’s financial prospects. The 44-year-old entrepreneur from Austin, is charged with wire fraud for allegedly deceiving investors through multiple fraudulent tactics.

False Claims and Fabricated Evidence

The most egregious allegations center on O’Gara’s misrepresentations about potential investments and retail orders. Prosecutors claim he:

  • O’Gara falsely claimed to have medical expertise, telling investors he developed Wanu Water to address malnutrition in developing countries
  • Fabricated purchase order information from a major national retailer
  • Circulated forged term sheets suggesting substantial private equity investments
  • Misrepresented the company’s valuation, claiming it was worth up to $30 million

Investor Targeting

The affidavit details O’Gara’s interactions with at least three individual investors:

  • Victim-1 from New Jersey invested $405,000 after being told about a potential $30 million valuation
  • Victim-2 from New York invested $500,000 based on false claims about pending large orders
  • Victim-3 from California and their family invested approximately $857,000

Financial Red Flags

Court documents reveal that Wanu Water was consistently losing money. In September 2019, the company was projecting losses of $3.77 million for the year. Despite this, O’Gara continued to solicit investments by creating an illusion of imminent success.

Potential Consequences

The wire fraud charge carries severe potential penalties, including:

  • Up to 20 years in prison
  • A maximum fine of $250,000
  • Potential additional financial penalties based on investor losses

The U.S. Attorney’s Office has urged potential victims to contact the FBI at newark-victim_assistance@fbi.gov.

The investigation is ongoing, with federal prosecutors from the Economic Crimes Unit in Newark, New Jersey leading the case.