A Houston, Texas, man has been indicted by a federal grand jury for an investment fraud scheme.
Duc Nguyen, also known as “Doug,” 56, was charged in a 12-count indictment returned by a federal grand jury on May 27, 2020.
According to the federal indictment, Nguyen proposed an opportunity for high net worth individuals to invest in the purchase, refurbishing, and sale of used oil equipment. He allegedly told Phillip and Brian Hudnall that profit from these transactions would be three to five times the amount of the investment. Brian and Phillip Hudnall raised money from investors based upon these representations from Nguyen.
For example, Brian Hudnall wire transferred $415,000 to Nguyen between May 3 and Sept. 19, 2018, for the purchase, refurbishment, and shipping of the oil equipment. Phillip Hudnall transferred $1,075,000 to Nguyen between April 15 and June 17, 2019, for the purchase, refurbishment, and shipping of the oil equipment.
Nguyen did not use any of the monies for the purchase, refurbishment, and shipment of used oil equipment, the indictment says, but instead spent the money on personal expenses. The federal indictment cites tens of thousands of dollars spent at several casinos.
The federal indictment charges Nguyen with 12 counts of wire fraud related to wire transfers of funds into his bank accounts.