IcomTech Promoter Sentenced to Nearly Six Years in Prison Over Crypto Ponzi Scheme
A senior promoter behind the collapsed crypto platform IcomTech has been sentenced to almost six years in federal jail for his function in a multimillion-dollar Ponzi scheme that focused working-class, Spanish-speaking buyers throughout the United States.
Key Takeaways:
- An IcomTech promoter was sentenced to almost six years for operating a crypto Ponzi scheme.
- The platform used faux “assured returns” to recycle investor funds.
- Mendoza should repay victims and forfeit property.
Magdaleno Mendoza was sentenced on Thursday to 71 months in jail, in accordance to the US Attorney’s Office for the Southern District of New York.
Prosecutors stated Mendoza performed a central function in selling IcomTech, a purported crypto mining and buying and selling firm that launched in mid-2018 and unraveled by the tip of 2019.
IcomTech’s “Guaranteed Returns” Masked Classic MLM-Style Crypto Ponzi
IcomTech promised buyers assured day by day returns from cryptocurrency mining and buying and selling.
In actuality, the operation functioned as a basic multi-level advertising and marketing Ponzi scheme, utilizing funds from new buyers to pay earlier members whereas senior promoters diverted tons of of 1000’s of {dollars} for private use.
In addition to jail time, Mendoza was ordered to pay $789,218.94 in restitution and forfeit $1.5 million, alongside together with his residence in Downey, California, which prosecutors stated was bought utilizing proceeds from the scheme.
Court filings present Mendoza was one in all IcomTech’s most senior promoters and maintained shut contact with founder David Carmona.
He hosted recruitment occasions at his personal restaurant in the Los Angeles space, accumulating massive quantities of money from attendees.
Promoters traveled nationwide internet hosting flashy expos, arriving in luxurious autos and designer clothes, whereas buyers had been proven dashboards displaying earnings they might not withdraw.
By August 2018, buyers started encountering delays and excuses when making an attempt to money out.
IcomTech responded by introducing a proprietary token known as “Icoms,” which promoters claimed would ultimately be used for funds. The token finally proved nugatory, additional compounding investor losses.
The sentencing additionally coated Mendoza’s unlawful reentry into the United States after deportation. Prosecutors stated he had been faraway from the nation 4 instances, as soon as below a false identification, and continued selling crypto Ponzi schemes even after IcomTech collapsed.
IcomTech Mastermind Sentenced to 10 Years in Prison
Several other figures connected to IcomTech, together with founder David Carmona and a number of senior promoters, have already been convicted and sentenced.
In October, Carmona, the mastermind behind IcomTech, was sentenced to 10 years in jail for conspiracy to commit wire fraud.
Gustavo Rodriguez, an IcomTech promoter, was sentenced to eight years on October 31, whereas David Brend received a 10-year sentence on December 2. In January, Ochoa was sentenced to 5 years in jail for his function in the scheme.
Between 2018 and 2019, IcomTech promised buyers a 100% return each six weeks.
IcomTech promoters enacted the huge crypto scheme by attending lavish expos in luxurious automobiles and carrying costly clothes, giving the phantasm that the sham digital asset firm may provide buyers monetary freedom.
However, this facade started to crumble by August 2018 as buyers struggled to withdraw their funds from the platform.
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