David Carmona, founder of IcomTech, has been sentenced to nearly 10 years in prison for orchestrating a cryptocurrency Ponzi scheme that defrauded investors of $8.4 million.
David Carmona, the founder of IcomTech, was sentenced to nearly 10 years in prison for his role in what prosecutors called a "cryptocurrency Ponzi scheme" that defrauded investors of millions. U.S. District Judge Jennifer L. Rochon handed down the 121-month prison sentence, along with three years of supervised release, after Carmona pled guilty to conspiracy to commit wire fraud. The scheme, which ran from 2018 to 2019, reportedly preyed on working-class individuals by promising large returns through cryptocurrency trading and mining—returns that never materialized.
Carmona and other IcomTech promoters traveled across the U.S. and internationally, hosting elaborate expos to recruit investors. At these events, they flaunted luxury cars and expensive clothing, projecting an image of financial success to entice others. According to prosecutors, IcomTech assured investors that their funds would double every six months. However, instead of engaging in cryptocurrency trading or mining as promised, Carmona and his associates used the money to pay existing investors and fund their personal lifestyles—a classic Ponzi scheme.
"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," said U.S. Attorney Damian Williams in a statement.
By the time IcomTech collapsed in 2019, investors were facing withdrawal delays, hidden fees, and numerous excuses. Many had been unable to access the profits they saw accumulating in their online accounts. To raise additional funds, IcomTech offered a token called “Icoms,” which they falsely claimed would be accepted for payments by companies. These tokens turned out to be worthless, exacerbating the financial losses for investors.
Carmona’s sentencing follows the conviction of several other IcomTech promoters, including former CEO Marco Ruiz Ochoa, who received a five-year prison sentence earlier this year. The total loss to victims is estimated at $8.4 million. As part of his sentence, Carmona will serve three years of supervised release following his prison term.
