Alameda man admits to running $2 million Ponzi scheme

ALAMEDA — A 35-year-old Alameda man has admitted to defrauding at least 20 people out of around $2 million as part of a years-long Ponzi scheme, the U.S. Department of Justice said Tuesday.

As part of a plea agreement, Long Nguyen admitted that between September 2015 and July 2021, he operated a scheme in which he made false statements about himself to victims, as well as the investment opportunities he could provide, how he would invest their money and what he did with their money, federal authorities said in a statement.

The DOJ said Nguyen pleaded guilty to four counts of wire fraud. According to federal prosecutors, Nguyen admitted to falsely presenting himself as a billionaire, lying about his investment opportunities and the benefits of investing with him. The DOJ said he told victims they would get a monthly income if they invested in his real estate investment trust.

However, the DOJ said he admitted he was using his victims’ money to pay back other victims, and most of the money was never invested. Instead, it was used for his own personal gain, authorities said.

To deceive victims, the DOJ said Nguyen created fake screenshots of financial statements that showed victims were making money.

Nguyen will be sentenced on Feb. 2, and he could face up to 20 years in prison for each count of wire fraud. The DOJ said the judge may also order Nguyen to serve an additional term of supervised released and pay a fine of up $250,000 per count. He has agreed to pay at least $1 million in restitution to his victims as part of the plea deal.