Founder of Austin Water Brand Sentenced to 51 Months for $6M Fraud

Todd O'Gara defrauded investors by lying about purchase orders and private equity funding for his now-defunct Wanu Water company.

Published on Feb. 21, 2026

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The founder of an Austin-based water brand, Todd O'Gara, was sentenced to over four years in prison for defrauding investors of more than $6 million. O'Gara, the 46-year-old founder of the now defunct Wanu Water beverage company, raised over $6.6 million from individual investors by repeatedly lying to solicit those investments and encouraging investors to maintain their investments, according to the U.S. Attorney's Office in the District of New Jersey.

Why it matters

This case highlights the risks of investing in startups, especially those making unsubstantiated claims about their business. It also underscores the importance of thorough due diligence when considering any investment opportunity to avoid falling victim to fraud.

The details

O'Gara pled guilty to one count of wire fraud before a judge in a Newark federal court. He was sentenced to 51 months in prison followed by three years of supervised release. The U.S. Attorney's Office says that O'Gara lied to investors about the size of purchase orders from retailers and about major investments from private equity firms, using fake documents including doctored emails and forged term sheets to wrap victims into his scheme.

  • On February 18, 2026, O'Gara was sentenced in a Newark federal court.

The players

Todd O'Gara

The 46-year-old founder of the now defunct Wanu Water beverage company who defrauded investors of over $6 million.

U.S. Attorney's Office in the District of New Jersey

The federal prosecutor's office that brought charges against O'Gara and secured his conviction.

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The takeaway

This fraud case serves as a cautionary tale for investors to be extremely diligent when evaluating startup investment opportunities, scrutinizing all claims and documentation to avoid falling victim to deception.