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more complaint has been filed against Nithyananda in USA for FRAUD AND DECEIT,
RACKETEERING, CIVIL CONSPIRACY and UNFAIR BUSINESS PRACTICES, cheating the US
government and donors by misusing the charitable, tax-exempt 501(c) status.
The complaint (Case no. EDCV13-363-JGB, filed on 27th Feb 2013 at
the US District Court, Central District of California) has been filed by
several ex-donors against Nithyananda, his secretaries and his organizations, allege
that Nithyananda and his secretaries blatantly misrepresented Nithyananda as a
Brahmachari, sanyasi living a simple life, and misrepresented the organizations
as charitable institutions benefitting the society and extracted crores of
rupees from them. But in reality Nithyananda’s intentions were to cheat the
public, devotees and the US government by misusing his position as the leader
of these organizations and charitable tax-exempt (501(c)) status of his
organizations to privately benefit from it (refer pg 50 of complaint). The ex-donors have demanded the return of
around $800,000 (around Rs. 4.5 crores) collected from them through fraud and
deceit. However, the court could award 3 times that amount (almost Rs. 14
crores) as compensation, if the racketeering charges are confirmed in a trial.
The defendants named in
the complaint are: (i) Nithyananda (Accused
1 in India), (ii) Gopal Reddy Sheelum @
Nithya Bhaktananda (Accused 2 in India) – already declared FRAUD by US Court in July 2012 in another case 5:11-CV-01304
SVW (SPx), Popatlal Savla vs Nithyananda Foundation (iii) Siva Vallabhaneni @ Nithya Sachitananda
(Accused 3 in India), (iv) Nithyananda
Foundation – also declared FRAUD by
US Court in July 2012 in case no. 5:11-CV-01304 SVW (SPx), Popatlal Savla vs
Nithyananda Foundation, (v) Life
Bliss Foundation in Montclair (Los Angeles), California (vi) Nithyananda Dhyanapaatem Temple and
Cultural Center (NDTCC) in Montclair (Los Angeles), California and (vii)
Dhyanapeetam Charitable Trust in Bidadi, India
In July 2012, in the
same California court, a jury reviewed all evidence and found Nithyananda
Foundation and Gopal Reddy Sheelum guilty of committing fraud against another
ex-donor Mr. Popatlal Savla and ordered them to return the $1.5 Million (~ Rs 8
crore) that was fraudulently obtained from him (see link below for judgment
from that case). But the details of the allegations (which are explained below) and
evidence presented in this latest complaint shockingly exposes well planned
efforts and criminal intent of Nithyananda and his secretaries Gopal Reddy
Sheelum (@Bhaktananda, A2) and Siva Vallabhaneni (@ Sachitananda, A3) to cheat
the public and government.
The allegations in the
complaint and other sections of interest are briefly explained below:
· Fraud and Deceit (Refer complaint, Pg
17, 25, 28, 29, 37, 39-40, 47, 50-51)
Publicly
and privately Nithyananda over emphasized that he lived a very simple life and
he was a Brahmachari Sanyasi (Pg 17). He intentionally misrepresented his
organizations as charitable tax-exempt (501(c) status) institutions exclusively
for charitable activities for the benefit of the society. But in fact it was benefitting
Nithyananda his secretaries, and other individuals, as large amounts collected
in US were transferred to Nithyananda’s bank account. (Pg 28, 37)
· Nithyananda
confessed about Sex with many and video being authentic: (refer Pg 25)
Nithynanda
personally confessed to donors in March 2010 about video being true (not
morphed as he alleged later), that he had sex with many persons, that the
sex-contract (i.e. NDA or Non-Disclosure
Agreements) were being used for many years (atleast since 2005). Nithyananda
also admitted that he misrepresented his organization as being charitable
entities, because most of the money collected in USA through his organizations
was sent to Nithyananda. (Refer Pg 25 for more details). Nithyananda and his
secretaries have also confirmed about existence of the NDA (Non-Diclosure
Agreement, better known as “sex contract”).
(refer Pg 40)
· Financial
fraud by Nithyananda organizations: (refer Pg 28, 29, 47)
Nithyananda
organization cannot account for more than $2 million, they have no records of
how they spent $3.6 million!!! Based on evidence in previous trial (in Popatlal
Savla vs. Nithyananda Foundation), an expert testified that Nithyananda
entities have 2 sets of books, and worst of all, the books (financial records)
were cooked to make $2 million profit turn into $2 million loss. More details
in pg 28,29, 47
· Civil Conspiracy (refer Pg 29-33)
Nithyananda
and his secretaries have elaborately planned to destroy evidence and strip all
the assets of entities in Nithyananda organizations, to avoid paying if they
face lawsuits. Nithyananda and his
secretaries specifically discussed that many people have expressed about sexual
abuse incidents happening to them, and so they were concerned about
potential lawsuits. (Pg 31). Details of plans and email discussions are in pg 29-33
& Exhibit F
· Racketeering
(pg 16)
Nithyananda
and his secretaries Gopal (Bhaktananda) and Siva (Sachitananda) operated the
assets of the charitable organizations as their own personal ATM and piggy
bank. Large sums of money moved from USA to India through Nithyananda’s
brother’s company called “Nithyananda Import Export”.
While Nithyananda
claims to have no connections whatsoever with Nithyananda Foundation or his
other organizations, the complaint infact goes to say that Nithyananda controlled
the organizations to such a great degree that Nithyananda and his Organizations
are one and the same, there is no separation between them (Refer pg 13-15)
This latest complaint against Nithyananda, which is similar to a class
action lawsuit, was filed by 6 ex-donors on 28th Feb 2013. Interestingly,
around the same time 3 years ago (on 2nd Mar 2010), truth about
Nithyananda came to light!
Links to related
documents:
FRAUD complaint against
Nithyananda by ex-donors in Feb 2013 in California, USA:
FRAUD Verdict against
Nithyananda by California Court:
FRAUD complaint against
Nithyananda’s secretary and organization by Popatlal Savla, in California, USA
Complaint copy can also be obtained from the court website
at http://www.cacd.uscourts.gov/records
where “Public Access to Court’s Electronic
Records” are at: http://www.pacer.gov/findcase.html
