SAN DIEGO (CNS) - A San Diego man was sentenced Friday to more than six years in prison for operating a $65 million Ponzi scheme that caused investors to lose more than $20 million.
In addition to the 75-month sentence, Jonny Ngo, former president and CEO of NL Technology, LLC, was ordered to pay nearly $21 million in restitution for bilking investors out of money he alleged would be used to fund wholesale purchase orders of smartphone screens and other electronic goods.
Prosecutors said the funds were actually spent on personal expenses, such as "a home, luxury cars and gambling."
Ngo, 34, told investors that NL Technology was supplying smartphone screens to several buyers, including two that each ordered about $2 million worth of NL Technology products, and prepared false financial and bank statements to back up his claims, according to the U.S. Attorney's Office.
Ngo pleaded guilty to a mail fraud charge last year.
"Ngo swindled and conned innocent investors out of their hard-earned money to support his lavish lifestyle," FBI Special Agent in Charge Suzanne Turner said. "The false representations about wholesale purchase orders worth millions and supporting phony business records were all lies. Ngo's actions serve as an example of the unconscionable greed that fuels these all too common fraud cases."