IcomTech ‘Crypto Ponzi Scheme’ Founder Sentenced to 10 Years in Prison

David Carmona, the founder of IcomTech, has received a nearly 10-year prison sentence for running a cryptocurrency Ponzi scheme

David Carmona, the founder of IcomTech, received a nearly 10-year prison sentence after prosecutors characterized the firm as a cryptocurrency Ponzi scheme, asserting that he “exploited working-class individuals.”

Carmona, 41, was sentenced to 121 months in prison on Friday by U.S. District Judge Jennifer L. Rochon, according to a statement issued by the U.S. Attorney’s Office for the Southern District of New York. In addition, he was handed a three-year term of supervised release. Carmona pleaded guilty in December 2023 to one count of conspiracy for committing wire fraud.

In 2018, Carmona and his associates established IcomTech, promoting it as a cryptocurrency mining and trading company. The firm claimed that investors could earn profits by purchasing specific “purported cryptocurrency-related investment products,” according to prosecutors. However, these promises were never realized. Instead, prosecutors allege that IcomTech did not engage in mining or trading for its investors but used the funds to pay off other investors and for personal use.

“David Carmona masterminded the IcomTech cryptocurrency Ponzi scheme, which preyed upon working-class people by promising them complete financial freedom in exchange for parting with their hard-earned money,” said U.S. Attorney Damian Williams in a statement.

According to prosecutors, Carmona and others organized extravagant expos to attract potential investors while boasting about the substantial profits they were making.

“IcomTech promoters often showed up at larger-scale events in expensive cars and wearing luxury clothing as a way of exhibiting their purportedly legitimate success from IcomTech,” the prosecution alleged. “The atmosphere of these events was festive and designed to generate excitement about the schemes.”

When investors attempted to withdraw their funds in 2018, they were met with excuses, delays, and unexpected fees. Despite the mounting complaints, IcomTech promoters, including Carmona, continued to promote the company and accept investments, prosecutors said. By the end of 2019, IcomTech had collapsed.

Besides David Carmona, former IcomTech CEO Marco Ruiz was also handed a five-year prison sentence in January for promoting the crypto Ponzi scheme company.

From Forcount to IcomTech: Inside The $8.4 Million Crypto Ponzi Scheme

On December 14, 2022, the U.S. Attorney’s Office for the Southern District of New York revealed an indictment against IcomTech and Forcount. The two companies, which claimed to specialize in crypto mining and trading, allegedly promised investors “guaranteed daily returns.” These returns, they claimed, could double an investment within six months.

Prosecutors claimed that, in reality, both companies were using funds from fresh investors to pay returns to earlier ones. Additionally, a portion of the money was spent on promoting the firms as well as purchasing luxury items and real estate.

Promoters would allegedly arrive at events in expensive cars, dressed in luxury clothing, and boast about the money they were making from their investments in the company they were promoting. Investors were even provided access to a “portal” where they could track their returns.

The Securities and Exchange Commission (SEC) brought charges against the creators and promoters of Forcount. The complaint alleged that the group had primarily targeted Spanish-speaking individuals, raising over $8.4 million from “hundreds” of investors. They did so by selling “memberships” that promised a share of the company’s cryptocurrency trading and mining activities.

In an attempt to generate liquidity, both companies created their own tokens to repay investors. IcomTech launched “Icoms,” while Forcount introduced “Mindexcoin.” However, the token sales had failed, and by 2021, both companies had stopped making payments to investors.

David Carmona, from Queens, New York, was named in the indictment as the founder of IcomTech and was charged with committing wire fraud. On the other hand, Francisley da Silva, the founder of Forcount from Curitiba, Brazil, faced charges of wire fraud, conspiracy to commit wire fraud, and money laundering conspiracy.