IcomTech, a scam started in 2018, scammed investors of over $8 million during its tenure. Its founder has been sentenced to ten years in prison.
David Carmona, the man behind the Ponzi scheme IcomTech, was sentenced to 121 months in jail by US District Judge Jennifer L Rochon. The scheme operated between 2018 and 2019, parting its investors from a collective $8.4 million.
In a release, US Attorney Damian Williams mentioned, “David Carmona masterminded the IcomTech cryptocurrency Ponzi scheme, which preyed upon working-class people by promising them complete financial freedom in exchange for parting with their hard-earned money.” He added, “And when the scheme came crashing down, Carmona’s victims were left with nothing.”
Carmona’s selling point for his grift included telling investors he would double their money every six months by investing them into cryptocurrencies and mining operations. However, that was never the case. Investors had problems from the get-go. While online portals to the IcomTech platform displayed multiplying dividends, users never got their hands on the profits. They were unable to withdraw their profits and asked to pay additional fees if they wanted to liquidate their investments.
Some users got their funds back. However, IcomTech’s promoters funneled investments from newer investors to older ones in a typical Ponzi scheme fashion. Such schemes only survive until investors keep coming in. When they stop, the operations collapse because they do not generate any real revenue and use investments from newer investors to pay back older ones.
Furthermore, Carmona and his team used investor money to fund their lavish lifestyles and travel across the US and the world to promote their operation. They advanced their lifestyles by flaunting luxury cars and clothes to potential investors, claiming that those investing could live the same way.
IcomTech Even Launched a Token to Scam More Investors
Since IcomTech’s team burned huge chunks of investor money, they delayed withdrawals from August 2018. The company continued promoting the scam and bringing in more investments. It even launched a token, Icoms, to raise more funds. Carmona and the team also claimed companies would accept the tokens for payments of services and products. However, no such thing occurred. Icoms was worthless.
Carmona pleaded guilty to wire fraud. IcomTech’s former CEO, Ruiz Ochoa, was sentenced in January to five years in prison. Authorities also convicted its promoters, David Brend and Gustavo Rodriguez, in March.
