According to a press release from the United States Attorney’s Office for the Southern District of New York, David Brend and Gustavo Rodriguez, the promoters of the fraudulent crypto mining and trading facility IcomTech, were convicted of conspiracy to commit wire fraud by a New York jury on Friday.
Investors were enticed by false promises offered by IcomTech.
Initiated in 2018 under the leadership of David Carmona, IcomTech made deceptive pledges to investors, assuring them of daily returns for participating in the company’s cryptocurrency services such as mining and trading. The press release highlights that contrary to its assurances, the company failed to allocate the funds as promised, instead diverting them to settle obligations with other victims “to perpetuate the schemes and for personal enrichment.”
Two defendants convicted at trial for participating in cryptocurrency Ponzi scheme “IcomTech”@HSINewYork https://t.co/KL7vjJuzc1
— US Attorney SDNY (@SDNYnews) March 15, 2024
Rodriguez was enlisted to create the website for IcomTech, while Brend and fellow promoters embarked on extensive travels across the United States and internationally. During these trips, they organized extravagant expos and smaller community presentations, strategically designed to attract victims and encourage investment in the schemes.
U.S. Attorney Damian Williams declared, “IcomTech deceived tens of thousands of individuals, siphoning tens of millions of dollars from them. It dangled the deceptive lure of effortless wealth through purported cryptocurrency ventures, ultimately exploiting honest individuals and robbing them of their diligently earned finances.”
Preventing victims from accessing their funds.
The fraudulent individuals went to great lengths, even donning luxurious attire and driving high-end vehicles, during their appearances at prominent cryptocurrency events. They unabashedly flaunted their purported earnings, enticing attendees with promises of financial prosperity while urging them to invest for their own financial liberation.
After victims made their investments, they were promised access to an online portal where they could supposedly monitor their funds. However, by August 2018, these investors found themselves unable to retrieve their funds, as access to them had been barred. This prevented them from withdrawing their investments from the crypto mining and trading company’s website, leaving them in a state of financial limbo.
Despite numerous complaints regarding this issue, the promoters of IcomTech, including Brend, persisted in promoting the company and accepting investments from victims. Meanwhile, Rodriguez continued to maintain the website, exacerbating the fraudulent scheme’s longevity and impact on unsuspecting investors, as outlined in the press release.
Confronting the prospect of spending two decades incarcerated.
In response to mounting complaints from investors, IcomTech devised their own “Icom” token, purporting that these tokens would eventually accrue substantial value once accepted by various companies as payment for goods and services. However, it became evident that these tokens held little to no actual worth, inflicting further financial harm upon victims who had invested in them.
The recent revelations of Brend and Rodriguez’s convictions emerge merely two months subsequent to the sentencing of their counterpart and IcomTech CEO, Marco Ruiz Ochoa, who received a five-year prison term for his involvement in the cryptocurrency Ponzi scheme.
Brend and Rodriguez now find themselves facing the grim prospect of a maximum twenty-year prison sentence each. Their fate will be determined during their scheduled sentencing hearings on June 27 and June 28, 2024.
In light of these developments, U.S. Attorney Williams emphasized the significance of this verdict, stressing its pivotal message to those who engage in Ponzi schemes—be it within the cryptocurrency domain or elsewhere. His remarks underscore the unwavering commitment of the Office to combat fraud in all its manifestations, ensuring that perpetrators are held fully accountable for their actions.
