The former president and CEO of a San Diego-based technology company pleaded not guilty to federal wire fraud, mail fraud and money laundering charges Friday for allegedly operating a $65 million investment fraud scheme.
Jonny Ngo, 32, of San Diego — who ran NL Technology LLC — is accused of bilking investors out of millions that he told victims would be used to fund wholesale purchase orders of smartphone screens and other electronic goods.
Prosecutors say the funds were actually spent on personal expenses, such as “a home, luxury cars and gambling.”
Ngo allegedly told investors that NL Technology was supplying smartphone screens to several buyers, including two that each ordered $2 million worth of NL Technology products and prepared false financial and bank statements to back up his claims.
“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 Acting Special Agent in Charge Suzanne Turner.
Ngo was also charged along with Donato “Mick” Baca Jr., last September by the U.S. Securities and Exchange Commission. A news release from the SEC states that Ngo and NL Technology agreed to settle with the agency without admitting or denying the allegations.
Ngo is due back in San Diego federal court Tuesday morning for a detention hearing because the government believes he presents a flight risk, prosecutors said.
— City News Service
