David Carmona, the founder of the cryptocurrency Ponzi scheme IcomTech, has been sentenced to 121 months (10 years) in prison for defrauding investors out of approximately $8.4 million. A U.S. district judge in Manhattan issued this sentencing and followed Carmona’s guilty plea to wire fraud conspiracy in December 2023.
The court noted that Icomtech promoters embarked on a tour across the United States and ventured internationally, hosting extravagant events designed to entice victims, weaving an alluring narrative around their schemes.
The promoters, often charismatic and persuasive, elaborated on the intricacies of their investment products and detailed compensation plans to captivate audiences. They portrayed these opportunities as a golden gateway to financial freedom, promising untold wealth and prosperity.
“IcomTech promoters often showed up at larger-scale events in expensive cars and wearing luxury clothing as a way of exhibiting their purportedly legitimate success from IcomTech” the court said. “The atmosphere of these events was festive and designed to generate excitement about the schemes.”
In addition to being sentenced to prison, 41-year-old David Carmona from Queens, New York, received three years of supervised release.
The IcomTech Ponzi scheme, orchestrated by Carmona and his team, duped individuals into believing they could earn significant profits through cryptocurrency mining and trading. Running from mid-2018 to late 2019, the scheme defrauded investors of approximately $8.4 million.
Read also: In 2023, Americans lost $5.6 billion to crypto scams, a 45% increase from the previous year, says the FBI.
IcomTech falsely promised investors they could double their money in six months. In reality, the company generated no legitimate profits; instead, it used funds from new investors to pay earlier ones, creating an illusion of success. To lure more victims, they hosted events and flaunted a lavish lifestyle.
Many investors lost their money in this scheme. When they attempted to withdraw their funds, they discovered that the numbers on the company’s website were fabricated, and their tokens held no value.
