The Founder of Crypto Ponzi Scheme IcomTech Sentenced to 10 Years in Jail as the head of IcomTech’s cryptocurrency Ponzi scheme, sentenced to 10 years in prison for conspiracy to commit wire fraud.
The Scheme: False Claims and Victimization
Carmona, the head of IcomTech, had promised investors returns of a high order to attract hardworking people to part with their savings. The U.S. Attorney Damian Williams said those promises were nothing but lies meant to help IcomTech part people from their savings. In truth, them was not even carrying on any business activities.
Flashy Expos and Deceitful Promotions
So did Carmona and the other promoters of IcomTech, who promoted their scheme with high-profile expos around the country and abroad. They’d show up at seminars in expensive cars and brag about the money they said they were making from the business, convincing seminar attendees they could become rich by investing in it.
Scammed Victims Left with Nothing
Contrary to their promises of doubling investors’ investments every six months, many investors were unable to withdraw their supposed profits. Investors’ complaints rose as requests for withdrawals were delayed or excused with heavy fees. Things got even worse when IcomTech created its own token, “Icoms,” which was worthless and further harmed those who lost money from the scheme.
Penalties from the Scheme
It is estimated that Carmona operated this Ponzi scheme, which defrauded victims out of approximately $8.4 million, from 2018 through to 2019. For Carmona, this 121-month prison sentence comes with three years of supervised release. Several other major players involving IcomTech have been brought to justice: former CEO Marco Ruiz Ochoa was sentenced to five years; promoters David Brend and Gustavo Rodriguez were convicted of wire fraud conspiracy.
Conclusion: Justice for Victims
The collapse of IcomTech had made a financially devastated situation for the investors. The sentencing of David Carmona and his associates was a significant turn toward delivering justice to the victims in such large-scale crypto Ponzi schemes.
