Federal prosecutors have charged the founder of Austin-based Wanu Water Inc. with wire fraud, alleging he defrauded investors of at least $3.4 million through a series of misrepresentations about the company.
Todd O’Gara, founder and executive chairman of Wanu Water, faces one count of wire fraud, U.S. Attorney Philip R. Sellinger announced. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Prosecutors allege O’Gara made multiple false statements to investors, including misrepresenting his educational background, professional credentials, and the company’s retail purchase orders. Court documents reveal he also allegedly fabricated information about interest from institutional investors.
According to the affidavit, Wanu Water, which sold nutrient-enhanced beverages through retail and online channels, was losing substantial money. By September 2019, the company projected annual losses of approximately $3.77 million.
In one instance, prosecutors say O’Gara solicited a $50,000 loan from an investor for a production run when the company’s bank account had a deficit of $1,729.59. This same investor had previously invested $250,000 in the company and would later make additional investments of $55,000 and $100,000.
Another investor, along with family members, invested approximately $857,000 between 2019 and 2021 based on what prosecutors describe as misrepresentations about private equity firm investments and retail purchase orders.
O’Gara denies the allegations. “I unequivocally deny the charges and look forward to being cleared from all allegations,” he said in a statement.
The Better Business Bureau advises potential investors to request prospectuses and offering circulars, which detail financial performance and risk factors, and to verify company information through official state and county documents.
“We’re seeing a substantial increase in this kind of fraud,” Sellinger said, speaking generally about investment fraud cases. He warned investors to be wary of returns that seem “too good to be true.”