Key Points
– David Carmona, founder of IcomTech, sentenced to 121 months in prison for orchestrating a cryptocurrency Ponzi scheme that targeted working-class individuals.
– The scheme promised investors doubled returns within six months through non-existent cryptocurrency trading and mining operations.
On October 4, 2024, U.S. District Judge Jennifer L. Rochon sentenced David Carmona, the founder of the cryptocurrency Ponzi scheme IcomTech, to 121 months in prison. The sentencing was announced by Damian Williams, the United States Attorney for the Southern District of New York.
U.S. Attorney Williams stated, “David Carmona masterminded the IcomTech cryptocurrency Ponzi scheme, which preyed upon working-class people by promising them complete financial freedom in exchange for parting with their hard-earned money.” He emphasized that Carmona’s claims of cryptocurrency trading and mining were fabricated, leaving victims with nothing when the scheme collapsed.
The IcomTech Scheme: Operations and Tactics
Founded by Carmona in 2018, IcomTech presented itself as a cryptocurrency mining and trading company. The scheme promised investors guaranteed daily returns and the doubling of their investments within six months. However, investigations revealed that IcomTech engaged in no actual cryptocurrency operations.
The company’s promoters, including Carmona, employed various tactics to lure investors:
1. Hosting lavish expos and community presentations across the United States and internationally.
2. Displaying symbols of wealth, such as luxury cars and clothing, at events to create an illusion of success.
3. Providing victims with access to a seemingly legitimate online portal showing accumulating “profits.”
Victims invested using cash, checks, wire transfers, and cryptocurrency. While the online portal displayed growing profits, most investors were unable to withdraw funds and ultimately lost their entire investments.
Scheme Collapse and Further Deception
As early as August 2018, investors began experiencing difficulties withdrawing funds. When confronted, promoters offered excuses, delays, and imposed hidden fees. Despite mounting complaints, Carmona and other promoters continued to accept investments.
In a last-ditch effort to maintain the scheme, IcomTech introduced a proprietary crypto-token called “Icoms.” Promoters falsely claimed these tokens would gain significant value, but they were essentially worthless, causing further financial losses to victims.
By late 2019, IcomTech had ceased all payments to investors, leading to the scheme’s collapse.
Legal Consequences and Ongoing Investigations
In addition to the 121-month prison sentence, Carmona, a 41-year-old Queens, New York resident, was sentenced to three years of supervised release.
The case was investigated by Special Agents from Homeland Security Investigations’ El Dorado Task Force, with assistance from the Securities and Exchange Commission and the Commodity Futures Trading Commission.
This sentencing marks a significant step in addressing cryptocurrency-related fraud, highlighting the increasing focus of law enforcement on such schemes that exploit the complex and often misunderstood nature of digital currencies.
