Scammers in Disguise: How Fraudsters post as Millionaires Just To Dupe Investors With False Crypto Riches

David Carmona, the founder of the Icomtech cryptocurrency Ponzi scheme, was sentenced to more than 10 years in prison for deceiving investors with false profits promises.

Carmona and his promoters often showed up at large scale events in expensive cars and wearing luxury clothing as a way to flaunt their wealth, promising their investors that they could enjoy the same affluence through lucrative crypto trading and mining activities that would reap attractive returns every six months.

United States Attorney Damian Williams said in a statement,

"Carmona was the "matermind" behind IcomTech, which preyed upon working-class people by promising them complete financial freedom in exchange for parting with their hard-earned money."

Carmona and his team often hosted lavish expos to lure investors but left them with nothing when the scheme collapsed.

But it all came crashing down

In reality, IcomTech was doing no such thing. Carmona's scheme came crashing down when victims realised that they couldn't withdraw the profits they saw accumulate on the online portal. They were often met with excuses, delays and hidden fees from the IcomTech team if they were able to make withdrawals at all.

Despite the complaints, IcomTech promoters, including Carmono, kept trying to promote the company and accept investments.

As the number of complaints rose, IcomTech offered a token called "Icoms" to raise extra cash on false claims it would be accepted in payments. Icoms were essentially worthless and caused further losses as IcomTech collapsed in 2019 and stopped making payments.

Carmona's days of scamming are finally over

In just a short span of one year, the IcomTech Ponzi scheme netted an estimated $8.4 million from victims. David Carmona, who was the mastermind of the ponzi scheme, pleaded guilty to wire fraud conspiracy in December 2023, and he was sentenced to 10 years in prison. In addition to the 121-month prison term, Carmona was sentenced to three years of supervised release.

Many of his co-conspirators also faced the same fate. Former IcomTech CEO Marco Ruiz Ochoa, for example, was sentenced to five years in prison in January. Meanwhile, Icom Tech promoters David Brend and Gustavo Rodriguez were convicted to consipracy to commit wire fraud in March.