SACRAMENTO, Calif. (AP) — The owner of two Northern California medical-supply businesses has been arrested on fraud charges for allegedly running a Ponzi scheme to keep his firms afloat.

The Sacramento Bee cites court papers that say Deepal Wannakuwatte took in more than $125 million over the past decade from investors who were financing contracts to supply gloves to the U.S. Department of Veterans Affairs. While he allegedly told investors that his company International Manufacturing had VA contracts totaling $100 million a year, the affidavit says actual sales came to just $25,000 a year.

The affidavit says Wannakuwatte was running a Ponzi scheme, paying investors not with profits from his glove contracts but with money provided by other investors.

According to a separate civil suit, Wannakuwatte's other Sacramento company, RelyAid, borrowed $4.6 million to build a latex glove factory that never opened.