Two former promoters of cryptocurrency mining and trading company IcomTech have been convicted by a New York jury for their involvement in a wire fraud conspiracy. David Brend and Gustavo Rodriguez, found guilty of conspiracy to commit wire fraud, face potential prison sentences of up to 20 years. The verdict, reached after a two-week trial in a New York District Court, marks the culmination of legal proceedings against the individuals.
According to the U.S. Attorney's Office for the Southern District of New York, IcomTech founder David Carmona enlisted Rodriguez in mid-2018 to develop a website for the newly established company. IcomTech purported itself as a cryptocurrency mining and trading firm, promising investors daily returns from its activities. However, prosecutors allege that rather than engaging in legitimate cryptocurrency operations, the company operated a Ponzi scheme, utilizing investor funds to pay returns to other investors.
Rodriguez was also involved in setting the pricing for "investment packages" and fabricating daily returns accessible to investors through maintained websites and portals. Meanwhile, Brend and other scheme promoters are accused of misappropriating significant sums of investor funds for personal expenses, including real estate purchases, travel, and extravagant events aimed at luring more investments.
The scheme enticed investors with the promise of financial freedom, showcasing purported profits on online portals. However, investors faced obstacles in withdrawing their funds, encountering excuses, delays, and hidden fees. In an effort to raise additional capital, IcomTech introduced tokens called "Icoms," falsely claiming they would be accepted as payment. These tokens were ultimately deemed worthless, exacerbating losses when IcomTech collapsed in 2019, ceasing payments altogether.
U.S. Attorney Damian Williams characterized the scheme as defrauding tens of thousands of individuals out of millions of dollars, depriving hardworking people of their savings. Brend and Rodriguez, convicted of federal crimes, are set to receive lengthy prison sentences for their deceitful actions. Brend's sentencing is scheduled for June 27, followed by Rodriguez's on June 28. Former IcomTech CEO Marco Ochoa was previously sentenced to five years in prison, while founder David Carmona pleaded guilty to conspiracy to commit wire fraud.
