A federal judge has ordered the founder of a now closed Point Loma electronic business to remain detained without bail in federal prison as he awaits trial on 21 counts of mail and wire fraud.
The founder, Jonny Ngo, 33, raised more than $61 million from 350 investors for the company. The business, NL Technology LLC, closed its Rosecrans Street shop in 2018, and Ngo was indicted by a federal grand jury in April.
U.S. District Court Judge Magistrate Barry Kurren described Ngo as posing an “economic danger to the community” as a reason to deny bail, according to court records. Curren also cited Ngo as a possible flight risk and he remains in the Metropolitan Correctional Center.
Ngo, of San Diego, was ordered last month to next appear in court on Aug. 16 when a trial date will be set. He has pleaded not guilty. He was the owner and president of NL Technology.
The business imported wholesale electronic and technology-related products for resale in the U.S. A lawsuit filed against Ngo by the Securities & Exchange Commission says he purchased bulk electronics abroad for resale in the U.S.
The wire fraud charges involve e-mail communications for an order to purchase smartphone parts and screens and transfer of funds from investors who are considered victims.
The SEC suit says Ngo and another man converted investor funds to pay for “extravagant lifestyles” such as luxury cars, watches, homes, and spending other funds at casinos. To conceal the fraud, Ngo allegedly fabricated bank statements and financial records.
“Investment fraud has a long-lasting and devastating effect on victims in our community,” said U.S. Attorney Robert Brewer, Jr., in a statement.
“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,” said Brewer.
“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,” said FBI special agent in charge, Suzanne Turner.
The SEC suit won a $4.5 million judgement against Ngo in Sept., 2018, by U.S. Judge M. James Lorenz, according to records.
