Lavish Lifestyles, Fake Profits: IcomTech Promoter Jailed in Crypto Scam Case
The US Department of Justice introduced that Magdaleno Mendoza, a senior promoter of the cryptocurrency Ponzi scheme IcomTech, has been sentenced to 71 months in federal jail for his function in the fraud and for illegally reentering the United States after a number of deportations.
The sentence was imposed by US District Judge Paul G. Gardephe following Mendoza’s responsible plea in July to conspiracy to commit wire fraud and unlawful reentry.
IcomTech Ponzi Scheme
According to the official assertion, Mendoza was among the many most influential promoters of IcomTech, a purported crypto mining and buying and selling enterprise that launched in mid-2018 and falsely promised buyers assured day by day returns. In actuality, authorities said, the corporate operated as a multi-level advertising Ponzi scheme that used funds from new buyers to pay earlier individuals and enrich its promoters, whereas conducting no professional buying and selling or mining actions.
Mendoza, who had beforehand promoted different related schemes, performed a central function in recruiting victims, notably inside Spanish-speaking, working-class communities with little expertise in cryptocurrency investing. He and different promoters allegedly traveled throughout the United States. They hosted giant expos and small group conferences, the place they marketed IcomTech as a street to “monetary freedom” and showcased luxurious vehicles, clothes, and life to bolster credibility.
Prosecutors mentioned Mendoza personally hosted promotional occasions at his restaurant in the larger Los Angeles space and picked up 1000’s of {dollars} in money from victims as supposed investments. Investors got entry to on-line dashboards that displayed steadily rising “earnings,” however most have been unable to withdraw funds and finally misplaced their total investments, whereas promoters siphoned off lots of of 1000’s of {dollars} for private use.
Worthless Tokens, Prison Sentences, and Deportations
As withdrawal complaints mounted, IcomTech launched a proprietary token referred to as “Icoms,” which promoters claimed would acquire vital worth. But authorities mentioned the tokens have been successfully nugatory and deepened investor losses.
By late 2019, IcomTech had stopped making funds and collapsed. The Justice Department additionally discovered that a number of of Mendoza’s co-conspirators, together with founder David Carmona and different senior figures, have already been convicted and sentenced in associated circumstances.
Prosecutors additionally mentioned that Mendoza had been dwelling in the United States illegally for many years whereas selling the scheme and had been deported or eliminated at the least 4 occasions, together with as soon as below a false id.
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