Jury Conviction
David Brend and Gustavo Rodriguez, former promoters of IcomTech, a purported crypto mining and trading company, have been convicted of wire fraud conspiracy by a New York jury. This conviction could lead to a maximum sentence of 20 years for each individual involved in the scheme.
The Scheme Unveiled
The U.S. Attorney's Office for the Southern District of New York revealed that David Carmona, the founder of IcomTech, hired Gustavo Rodriguez in 2018 to create a website for the company. IcomTech falsely claimed to engage in crypto trading and mining, offering guaranteed daily returns to investors.
Two defendants convicted at trial for participating in cryptocurrency Ponzi scheme “IcomTech”@HSINewYork https://t.co/KL7vjJuzc1
— US Attorney SDNY (@SDNYnews) March 15, 2024
Modus Operandi
However, investigations revealed that IcomTech was not involved in any legitimate trading or mining activities. Instead, it operated as a "Ponzi" scheme, using new investor funds to pay off existing investors. Rodriguez played a key role in the scheme, advising on investment packages and falsifying daily returns to deceive investors.
Lavish Lifestyle and Deceptive Practices
The promoters, including Brend, misappropriated significant amounts of investor funds, using them for personal expenses such as real estate, travel, and extravagant expos. They lured more investors with promises of financial freedom, presenting a facade of success with expensive cars and luxury clothing.
False Promises and Token Offering
Investors were led to believe that they could withdraw their profits, but were met with excuses and delays. To raise additional funds, IcomTech introduced a token called "Icoms," claiming it would be accepted as payment by various companies. However, these tokens were essentially worthless, leading to further losses for investors.
Legal Consequences
The scheme defrauded tens of thousands of people out of tens of millions of dollars. Brend and Rodriguez now face substantial prison time for their involvement. Brend is scheduled for sentencing on June 27, and Rodriguez on June 28.
Impact on Investors
The collapse of IcomTech in 2019 left investors with significant losses, highlighting the importance of due diligence and caution in the cryptocurrency space.
