US DOJ Sentences IcomTech Founder to 10 Years for Role in Crypto Ponzi Scheme

David Carmona, the founder of IcomTech, has been sentenced to approximately a decade in prison after prosecutors described his firm as a cryptocurrency Ponzi scheme that exploited working-class individuals seeking financial stability.

Founder of cryptocurrency ponzi scheme IcomTech sentenced to 121 months in prisonhttps://t.co/kJdAkBXi9k

— US Attorney SDNY (@SDNYnews) October 4, 2024

On Friday, United States District Judge Jennifer L. Rochon sentenced the 41-year-old Carmona to 121 months in prison, following his guilty plea to a conspiracy charge to commit wire fraud. The information was confirmed in a statement released by the U.S. Attorney’s Office for the Southern District of New York.

The IcomTech Ponzi Scheme

Carmona established IcomTech in 2018, marketing it as a cryptocurrency mining and trading company. 

Prosecutors allege that the firm promised investors significant returns if they purchased certain cryptocurrency-related investment products. However, those promises were never realized, as the company did not engage in mining or trading activities.

IcomTech victims invested in the company by purchasing various investment products through cash, checks, wire transfers, and even cryptocurrencies.

After investing, each victim was given access to an online portal that displayed their supposed returns. While investors saw profits accumulate on this seemingly legitimate platform, most could not withdraw any of these gains and ultimately lost their entire investments.

According to the statement, IcomTech reportedly used the funds from new investors to pay returns to earlier investors and finance personal expenses for its operators.

Luring Investors With Luxury

U.S. Attorney Damian Williams stated that Carmona was the architect of the IcomTech scheme, which preyed on individuals seeking financial freedom by making unrealistic promises. 

Prosecutors further highlighted that Carmona and his associates hosted extravagant expos to lure potential investors. They flaunted their perceived success, arriving at events in luxury cars and designer clothing to create a facade of legitimacy.

However, when investors tried to withdraw their funds in 2018, they faced excuses, delays, and hidden fees. Despite numerous complaints, IcomTech promoters continued to solicit investments, leading to the company’s collapse by the end of 2019.

Carmona’s sentencing follows that of former IcomTech CEO Marco Ruiz Ochoa, who received a five-year prison sentence in January for his involvement in the scheme.

In related news, CoinTab reported that Caroline Ellison, former co-CEO of Alameda Research, was sentenced to two years in prison for her involvement in the collapse of FTX, a cryptocurrency exchange that led to billions of dollars in consumer losses.