Long Nguyen, Ponzi Scheme, California 2023

Long Nguyen, a 35-year-old Alameda resident, has been sentenced to two and a half years in prison for operating a Ponzi scheme that defrauded at least 20 individuals out of millions of dollars. Nguyen was also ordered to pay nearly $1.5 million in restitution and to forfeit $1 million. The sentence was imposed by Hon. Trina L. Thompson, United States District Judge.

Nguyen pleaded guilty in October 2023 to four counts of wire fraud, in violation of 18 U.S.C. § 1343. In his plea agreement, Nguyen admitted to operating a scheme to defraud his victims by making false statements about himself, his investment opportunities, and what he did with their money.

Nguyen made false statements to induce victims to give him money, including claiming he was a billionaire, that other people who invested with him had received large payouts at a high rate of return, and that he had access to pre-IPO investment opportunities. He also created fake screenshots that purported to show victims’ growing investment account balances and falsely told victims that he would buy them Teslas and homes.

According to the plea agreement, Nguyen did not invest the majority of the money he received from his victims. Instead, he spent their money for his own personal use and operated a Ponzi scheme by using money he received from some victims to pay other victims back. Nguyen devised and executed his fraudulent scheme with the intent to defraud his victims.

Nguyen was indicted by a federal grand jury in October 2022 on four counts of wire fraud. He pleaded guilty to all charges. In addition to sentencing Nguyen to prison, Judge Thompson ordered the defendant to pay $1,494,496.89 in restitution to his victims and to forfeit $1 million. Judge Thompson also ordered Nguyen to serve three years of supervised release to begin after his prison term is completed.

Assistant United States Attorney Kelsey Davidson is prosecuting the case with the assistance of Lance Libatique and Marina Ponomarchuk. The prosecution is the result of an investigation by the FBI.

Nguyen’s victims were left reeling after he lied to them when they asked for their money back, including by falsely telling them that he was being audited, that his accounts had been frozen, and that others, including his lawyer and the bank, were the source of the delay. He also sent fraudulent checks that his victims were unable to cash.

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