Two individuals have been sentenced for their involvement in a cryptocurrency Ponzi scheme known as IcomTech. David Brend received a 10-year prison sentence, while Gustavo Rodriguez was sentenced to eight years. The sentences were handed down by Judge Jennifer L. Rochon following their conviction for conspiracy to commit wire fraud during a trial earlier this year.
U.S. Attorney Damian Williams stated, "David Brend and Gustavo Rodriguez were central to the IcomTech Ponzi scheme – Rodriguez as the chief architect of its sham website, Brend as a face-to-face salesman who peddled the bogus enterprise and its supposed lucrative returns for investors. Together with others, Brend and Rodriguez defrauded thousands of people out of millions of dollars. Both were found guilty by a unanimous jury. Now they will serve substantial prison sentences for their crimes."
IcomTech was launched in mid-2018 when David Carmona hired Rodriguez to create a website for the operation. It falsely presented itself as a cryptocurrency mining and trading company that promised profits to investors through cryptocurrency-related investment products. However, the company did not engage in any actual trading or mining activities.
Promoters like Brend traveled across the U.S. and abroad, hosting events to attract investors with promises of financial freedom and significant returns. They often displayed wealth through luxury cars and clothing to appear successful from IcomTech's operations.
Investors bought into IcomTech using various payment methods, including cash and cryptocurrency, expecting profits that appeared on an online portal but were largely inaccessible for withdrawal. Meanwhile, promoters withdrew funds for personal use.
Rodriguez collaborated with Carmona on managing the website and structuring investment products. Despite mounting complaints from investors about withdrawal difficulties starting in August 2018, promoters continued soliciting investments while offering worthless proprietary crypto-tokens called "Icoms."
By late 2019, IcomTech ceased payments to investors and collapsed entirely.
In addition to his prison term, Rodriguez was ordered to pay $40,000 in forfeiture along with restitution yet to be determined. Brend also faces forfeiture and restitution orders pending future proceedings.
The investigation involved Homeland Security Investigations' El Dorado Task Force with assistance from the Securities and Exchange Commission and the Commodity Futures Trading Commission.
The case is being prosecuted by Assistant U.S. Attorneys Michael D. Maimin, T. Josiah Pertz, Benjamin A. Gianforti, and Cecilia E. Vogel from the Illicit Finance and Money Laundering Unit.