The Securities and Exchange Commission (SEC) today charged Wanu Water, Inc. and its founder Todd O’Gara with conducting an offering fraud scheme which raised millions of dollars over five years.
According to the SEC’s complaint, from January 2019 through August 2024, O’Gara and Wanu raised at least $10.3 million from more than 50 investors through the offer and sale of securities issued by Wanu.
As alleged, O’Gara and Wanu made material misrepresentations to investors by overstating the size of Wanu’s deals with a prominent retailer, falsely claiming that at least two private equity firms had promised large investments, misrepresenting O’Gara’s personal wealth and credentials, and misrepresenting how Wanu would use investors’ money.
The complaint further alleges that O’Gara and Wanu used fabricated documents to support their misrepresentations.
The SEC’s complaint charges O’Gara and Wanu with violating Section 17(a) of the Securities Act of 1933, and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 thereunder.
O’Gara and Wanu agreed to settle the SEC’s charges against them. The settlement, which is subject to court approval, would permanently enjoin O’Gara and Wanu from violating the charged provisions of the federal securities laws, would prohibit O’Gara from trading in securities (with the exception of trading in securities in his own personal accounts), and would impose an officer and director bar on O’Gara. It would also provide that the court will decide the amounts of disgorgement, prejudgment interest, and civil penalties at a later date.
O’Gara has also been charged criminally in a parallel action by the United States Attorney’s Office for the District of New Jersey for related conduct.
