IcomTech Promoter Receives Nearly Six-Year Prison Sentence for Crypto Ponzi Scheme

A senior promoter from the now-defunct crypto platform IcomTech has been sentenced to almost six years in prison for his involvement in a multimillion-dollar Ponzi scheme that primarily targeted working-class, Spanish-speaking investors across the United States.

Key Takeaways:

An IcomTech promoter has been sentenced to nearly six years for orchestrating a crypto Ponzi scheme.
The platform lured investors with false promises of “guaranteed returns” while recycling their funds.
Mendoza is required to repay victims and forfeit assets amounting to $1.5 million.

Magdaleno Mendoza was sentenced to 71 months in federal prison, as reported by the U.S. Attorney’s Office for the Southern District of New York.

Prosecutors revealed that Mendoza was instrumental in promoting IcomTech, a claimed crypto mining and trading company that was launched in mid-2018 but collapsed by the end of 2019.

IcomTech Promoter Sentenced to Nearly Six Years in Prison Over Crypto Ponzi Scheme

IcomTech’s “Guaranteed Returns” Hidden by Classic MLM-Style Ponzi Scheme

IcomTech assured investors of guaranteed daily returns through cryptocurrency mining and trading activities.

In reality, the operation functioned as a classic Ponzi scheme under the guise of multi-level marketing. It utilized funds from new investors to compensate earlier participants, while senior promoters embezzled hundreds of thousands of dollars for personal expenses.

As part of his sentence, Mendoza has been ordered to pay $789,218.94 in restitution and forfeit $1.5 million, in addition to his home in Downey, California, which, according to prosecutors, was acquired using money from the scheme.

Court documents indicate that Mendoza was among the most senior promoters of IcomTech and maintained a close relationship with the company's founder, David Carmona.

He organized recruitment events at his restaurant in the Los Angeles area, where he gathered significant cash from attendees.

Promoters traveled across the country to host extravagant expos, arriving in luxury cars and designer outfits. They showcased dashboards displaying profits that investors were ultimately unable to withdraw.

By August 2018, many investors began facing obstacles and excuses when attempting to cash out.

In response, IcomTech introduced a proprietary token named “Icoms,” claiming it would soon be utilized for payments. This token, however, turned out to be worthless, aggravating investor losses.

The sentencing also addressed Mendoza’s illegal reentry into the United States after being deported. Prosecutors noted he had been removed from the country four times, once under a false identity, and continued to promote crypto Ponzi schemes even after IcomTech’s demise.

IcomTech Mastermind Receives 10-Year Prison Sentence

Multiple figures associated with IcomTech, including founder David Carmona and various senior promoters, have already faced convictions and sentences.

In October, Carmona, the architect of IcomTech, was sentenced to 10 years in prison for conspiracy to commit wire fraud.

IcomTech promoter Gustavo Rodriguez was sentenced to eight years on October 31, while David Brend received a 10-year sentence on December 2. Additionally, Ochoa was sentenced to five years in prison for his role in the scheme in January.

Between 2018 and 2019, IcomTech reassured investors of a 100% return every six weeks.

Promoters executed this extensive crypto operation by attending opulent expos in luxury cars and stylish attire, creating the false impression that their fraudulent digital asset company could provide financial independence to investors.

However, this illusion began to fade by August 2018, as investors struggled to recover their funds from the platform.