1 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