Former Promoters of ICOMTECH Guilty of Crypto Ponzi Scheme

David Brend and Gustavo Rodriguez, erstwhile promoters of IcomTech, a cryptocurrency mining and trading venture, have been found guilty of wire fraud conspiracy by a New York jury, marking the culmination of a scheme described as a “Ponzi” operation.

Following a two-week trial in a New York District Court, the verdict was handed down on March 14, potentially subjecting both individuals to up to 20 years in prison.

IcomTech, established in mid-2018 by founder David Carmona, purported to be a cryptocurrency trading and mining entity. Rodriguez was enlisted to develop the company's website. Investors were falsely assured of guaranteed daily returns from its cryptocurrency endeavors.

According to the U.S. Attorneys Office for the Southern District of New York, IcomTech did not engage in genuine trading or mining activities. Instead, it functioned as a Ponzi scheme, utilizing fresh investments to provide returns to earlier participants. Rodriguez played a significant role in this deception, advising on investment packages and falsifying daily returns accessible through the company's website and managed portal.

Brend and other promoters allegedly misappropriated significant sums of investor funds for personal use, including real estate transactions and travel expenditures. Extravagant events were also organized to attract more investors, with promises of luxurious lifestyles and financial prosperity.

As investors encountered difficulties in withdrawing their profits, including delays and undisclosed fees, IcomTech introduced “Icoms,” a token purportedly accepted by various entities. However, the token held no real value, exacerbating losses for investors. Ultimately, IcomTech ceased operations in 2019, leaving investors empty-handed.

The court has accused the operation of defrauding tens of thousands of individuals, exploiting the savings of hardworking individuals.

Sentencing for Brend is scheduled for June 27, followed by Rodriguez‘s sentencing on June 28. In a separate legal proceeding, Marco Ochoa, IcomTech’s former CEO, received a five-year prison sentence in January after pleading guilty to wire fraud conspiracy. David Carmona, the founder, similarly entered a guilty plea to wire fraud conspiracy in December.