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Gamma,
yes both Kotalawala and Danduwan mismanaged their depositors money... but taking into note of this madoff case
[But it was the global recession which effectively prompted Madoff`s demise as investors, hit by the downturn, tried to withdraw about $7bn from his funds and he could not find the money to cover it.]
I got a strong feeling that this kind of thing has happened to GK as well after the Sakvithi debacle lot of people withdrew their money from private firms like GK... and there are also other reports of Kotalawalas failed investments in foreign countries..either ways he has clearly misused the money for his own benefit...
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