SAN DIEGO – Jonny Ngo, the former president and chief
executive officer of NL Technology, LLC, was arraigned today on a 21-count
indictment charging him with wire fraud, mail fraud and money laundering in
connection with operating a $65 million investment fraud. The hearing took
place in federal court before U.S. Magistrate Judge Mitchell D. Dembin after
the indictment was unsealed.
According to the indictment, Ngo induced his victims to
invest funds in various short-term investment contracts by making false
representations, including that: (a) investor money would be used to fund
wholesale purchase orders of smartphone screens and other electronic goods; (b)
NL Technology was a regular supplier of smartphone screens to a number of
buyers, including two buyers who each ordered approximately $2 million of
product from NL Technology; (c) all wholesale orders funded by investor money
was pre-purchased by NL Technology clients; and (d) the quality of the products
and safety of investor funds used to purchase the products was guaranteed by a
third-party escrow company.
The indictment further alleges that Ngo created counterfeit
invoices falsely indicating that NL Technology had substantial purchase orders
from alleged wholesale companies. The indictment alleges that Ngo also provided
false financial statements purportedly certified by an accountant showing NL
Technology earned income from its wholesale business totaling $12.5 million in
2015 and $15.4 million in 2016.
Moreover, as alleged, Ngo fabricated bank statements or screenshots from
bank statements held in the name of NL Technology with individual line items
altered to appear as legitimate wholesale business transactions. Lastly, Ngo created false checks from wholesale
companies allegedly doing business with NL Technology.
To further his investment fraud, Ngo and others allegedly
told investors that they could roll over their investments into future
investment contracts with NL Technology, when in fact no such future
investments were possible. Also, Ngo
allegedly lulled investors about the continued viability of NL Technology
through materially false representations, including that NL Technology had an
outstanding purchase order from a smartphone repair company for approximately
$300,000, when in fact, no such order existed.
Instead of investing the funds in the business, the
indictment alleges that Ngo converted investor funds to his own personal use
and benefit by spending the money on a home, luxury cars and gambling. As a result of his investment fraud, it is
alleged that Ngo induced investors to part with more than $60 million, and
ultimately caused millions of dollars in losses.
“Investment fraud has a long-lasting and devastating effect
on victims in our community,” said U.S. Attorney Robert S. Brewer, Jr. “When
these schemes are brought to our attention, we will work collaboratively with
our law enforcement partners to unravel the fraud and hold those responsible
for profiting from it.”
FBI Acting Special Agent in Charge Suzanne Turner said: “Mr. Ngo's alleged technology business scheme
was, in fact, a plan to deceive investors, luring them into a false sense of
security about their investments, falsifying documents to cover the lies and
stealing the funds for personal use. The FBI will continue to identify and
investigate those who defraud investors. We ask anyone who has information
related to investor fraud submit a tip at https://tips.fbi.gov/.”
U.S. Postal Inspection Srevice Inspector in Charge Nichole
Cooper stated: “Mr. Ngo is accused of a scheme that separated millions of
dollars from consumers who believed they were making legitimate
investments. However, those who commit
crimes like this one fail to realize that Postal Inspectors and our federal law
enforcement partners will discover these greedy schemes and will bring the
culprits to justice for their crimes against unsuspecting investors.”
The Government moved to detain the defendant as a risk of
flight. Judge Dembin set a detention
hearing for Tuesday, April 30, 2019 at 9:30 a.m. before U.S. Magistrate Judge
Ruben B. Brooks. The defendant will remain in custody until the hearing. Judge
Dembin also scheduled a motion hearing/trial setting for June 7, 2019 at 11
a.m. before U.S. District Judge Jeffrey T. Miller.
DEFENDANT
Case Number: 19CR1391-JM
Jonny Ngo Age: 32 San Diego, CA
SUMMARY OF CHARGES
Title 18, United States Code, Section 1343 – Wire Fraud
Maximum Penalties: 20 years’ in prison, a fine of $250,000,
three years of supervised release
Title 18, United States Code, Section 1341 – Mail Fraud
Maximum Penalties: 20 years’ in prison, a fine of $250,000,
three years of supervised release
Title 18, United States Code, Section 1957 – Money
Laundering
Maximum Penalties: 10 years’ in prison, a fine of $250,000,
three years of supervised release
AGENCIES
Federal Bureau of Investigation
United States Postal Inspection Service
An indictment itself is not evidence that the defendant
committed the crimes charged. The
defendant is presumed innocent until the Government meets its burden in court
of proving guilt beyond a reasonable doubt.
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