Promoters of IcomTech Crypto ‘Ponzi’ Convicted by NY Jury

Two former promoters of IcomTech, an alleged crypto mining and trading company, have been found guilty of wire fraud conspiracy by a New York jury. David Brend and Gustavo Rodriguez now face a maximum sentence of 20 years for their involvement in the Ponzi scheme. The trial lasted two weeks, and on March 14, the jury convicted both promoters of conspiracy to commit wire fraud. According to the U.S. Attorney’s Office for the Southern District of New York, David Carmona, the founder of IcomTech, hired Rodriguez in 2018 to create a website for the company. IcomTech claimed to be a crypto mining and trading firm that would provide guaranteed daily returns. Prosecutors allege that the company operated as a Ponzi scheme, using investor funds to pay other investors instead of actually trading or mining cryptocurrency. Rodriguez was responsible for setting the pricing of investment packages and fabricating daily returns on the website and portal he managed. In the meantime, Brend and other promoters of the scheme allegedly embezzled hundreds of thousands of dollars from investors. The stolen funds were used for personal expenses, such as buying real estate and hosting lavish events to attract more investors. Despite seeing their profits increase on the portal, IcomTech investors were unable to withdraw any money and faced delays and hidden fees. As complaints grew, IcomTech introduced a token called “Icoms” to raise additional funds, falsely claiming that it would be accepted as payment by various companies. Icoms turned out to be essentially worthless, leading to further losses for investors. The Ponzi scheme eventually collapsed in 2019, and payments stopped. Damian Williams, the U.S. Attorney for the Southern District of New York, stated that the scheme defrauded tens of thousands of people out of tens of millions of dollars, targeting hardworking individuals and robbing them of their earnings. Brend and Rodriguez’s conviction is a result of their deception, and they now face significant prison time. Brend is scheduled to be sentenced on June 27, while Rodriguez is set to be sentenced on June 28. In previous related cases, Marco Ochoa, IcomTech’s former CEO, was sentenced to five years in prison in January after pleading guilty to conspiracy to commit wire fraud. David Carmona, the founder of IcomTech, pleaded guilty to wire fraud conspiracy in December.