IcomTech Ponzi Scheme Exposed With Scam Tokens Causing Losses

Key Points:

• David Carmona was sentenced to 121 months in prison for running the IcomTech Ponzi scheme that defrauded working-class investors.
• Carmona misled investors by claiming their funds would be used for profitable crypto trading and mining.

David Carmona, founder of IcomTech, was sentenced to nearly a decade in prison for what prosecutors described as a cryptocurrency Ponzi scheme that scammed working-class individuals.

Read more: Tether Collaboration With DOJ Freezes $6M In Crypto-Scam Proceeds 

IcomTech Founder Sentenced to Almost 10 Years in Jail over Cryptocurrency Ponzi Scheme

U.S. District Judge Jennifer L. Rochon issued the 121-month sentence. According to the U.S. Attorney’s Office for the Southern District of New York, Carmona was also sentenced to three years of supervised release.

Carmona, 41, pleaded guilty to one count of conspiracy to commit wire fraud. The indictment alleged that he operated a scheme through which investors were deceived about receiving considerable returns from the trading and mining of cryptocurrency. U.S. Attorney Damian Williams said that in committing these crimes, Carmona, through his associates, lured victims into the IcomTech Ponzi scheme by promising to double investments in six months’ time, which turned out to be false in every respect.

Operating between mid-2018 and its collapse in late 2019, IcomTech swindled a combined $8.4 million from investors. This was after holding lavish events to attract victims, with promoters showing off expensive cars and upscale clothing to give the appearance of wealth and success.

These flashy presentations targeted potential investors with an impression of IcomTech’s legitimacy. Once investors started calling in trying to get their earnings, it was nothing but delays, excuses, and hidden fees.

Read more: Scam Wallet App Impersonating WalletConnect Stole Over $70,000 

Key Figures in IcomTech Ponzi Scheme Fraud Also Convicted

Even with the red flags, Carmona and other promoters still kept soliciting new investments. They include former IcomTech CEO Marco Ruiz Ochoa and associates David Brend and Gustavo Rodriguez.

The “Icoms” cryptocurrency token was then created by them, further extending the life of the IcomTech Ponzi scheme through the false claim of its wide acceptance for payments. It turned out that these tokens were worthless, further deepening the losses by investors.

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