05 Oct
05Oct

David Carmona, the founder of IcomTech, has been sentenced to 121 months in prison for his role in a significant cryptocurrency fraud scheme that defrauded investors of $8.4 million. Alongside his prison term, he will also face three years of supervised release. Damian Williams, the United States Attorney for the Southern District of New York, condemned Carmona for orchestrating a Ponzi scheme that preyed on unsuspecting investors.

Misleading Promises of Profit

Carmona, who founded IcomTech in 2018 alongside six other individuals, marketed the company as a promising crypto mining and trading venture. He claimed that investors could achieve substantial profits by purchasing crypto-related products, even suggesting they could double their returns within six months. However, these assurances turned out to be completely false, leading to devastating losses for investors.

“It was all a lie. And when the scheme came crashing down, Carmona’s victims were left with nothing,” said Williams. “Carmona’s days of scamming honest people are at an end, and he now faces substantial time in prison.”

Active Promotion and Fund Misuse

The fraudulent scheme involved aggressive marketing efforts, with Carmona and his associates traveling across the U.S. and internationally to host expos and presentations designed to attract investors. They flaunted extravagant lifestyles, wearing lavish clothing and accessories to create an illusion of success and credibility for IcomTech.

Once investors made their contributions, they were given access to an online portal that displayed purported returns. However, while the portal indicated growth, most investors found themselves unable to access their funds when they attempted withdrawals. Concerns over the difficulty of accessing their money were met with excuses from Carmona and other company leaders.

Investigations revealed that the promoters of IcomTech had access to the funds but were misusing them for personal indulgences, including purchasing real estate and luxury goods. Even as the scheme unraveled, they continued to promote the company, urging investors to claim their worthless "Icom" tokens, which ultimately contributed to the financial ruin of many victims.

Co-Conspirator Sentenced

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

As the fallout from this case continues, it serves as a stark reminder of the risks associated with cryptocurrency investments, particularly in schemes that promise unrealistic returns. The legal repercussions for Carmona reflect a growing effort by authorities to combat fraud in the rapidly evolving cryptocurrency landscape.

October 2024, Cryptoniteuae

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