David Carmona, the 41-year-old founder of IcomTech, was sentenced to nearly 10 years in prison for his role in a cryptocurrency Ponzi scheme. The U.S. Attorney’s Office for the Southern District of New York confirmed that U.S. District Judge Jennifer L. Rochon handed Carmona a 121-month sentence. Carmona had pleaded guilty to conspiracy to commit wire fraud.
The Scheme Behind IcomTech
Founded in 2018, IcomTech was promoted as a crypto mining and trading company. Carmona and his associates promised investors high returns through “cryptocurrency-related investment products.” However, prosecutors revealed that IcomTech was never involved in mining or trading. Instead, the company used new investor money to pay previous investors, a hallmark of a Ponzi scheme.
Lavish Lifestyle to Lure Investors
Carmona and his team hosted large, flashy expos, showcasing luxury cars and expensive clothing to give the illusion of wealth and success. These events were designed to attract more investors by creating excitement and false confidence in the company’s operations.
Investors Left Empty-Handed
When investors attempted to withdraw funds in 2018, they were met with excuses, delays, and unexpected fees. Despite these issues, Carmona and other IcomTech promoters continued to solicit investments. By the end of 2019, the company collapsed, leaving many investors with significant financial losses.
Co-Founder Also Sentenced
Former IcomTech CEO, Marco Ruiz Ochoa, was sentenced earlier in January to five years in prison for his role in the scheme.
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