The founder of a closed Point Loma electronic business pleaded guilty Sept. 12 to mail fraud and has agreed to repay $20 million to hundreds of victims.
Jonny Ngo, 33, faces up to 20 years in federal prison when he is sentenced on Jan. 10, 2020 by U.S. District Court Judge Jeff Miller, his plea agreement shows.
Ngo 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.
Court documents show the number of victims in the hundreds which also include some businesses. The total loss to everyone is $20,292.490.60, according to court documents.
Ngo remains in the Metropolitan Correctional Center without bail after U.S. Magistrate Judge Barry Kurren deemed him a flight risk and described Ngo as posing “an economic danger to the community.”
He was the owner and president of NL Technology and has consented to a money judgement against him along with forfeiture of any money or assets.
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 email communications for an order to purchase smartphone parts and screens and transfer of funds from victims.
Twenty other counts of mail fraud, wire fraud, and money laundering will be dismissed at his sentencing.
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.
“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, after his indictment.
The SEC suit won a $4.5 million judgement against Ngo in September 2018.
