David Brend, a promoter of the IcomTech cryptocurrency Ponzi scheme, has been sentenced to 10 years in prison following his conviction for conspiracy to commit wire fraud in March.
Details of the IcomTech Scheme
Brend, working with co-defendant David Carmona and alongside Gustavo Rodriguez, helped run IcomTech, a cryptocurrency mining and trading platform launched in 2018. The platform promised “guaranteed daily returns” on investments but was, in fact, a scam.
U.S. prosecutors argue that no real digital asset trading or mining occurred. Instead, promoters used victim funds to pay other victims, promote the scheme, and enrich themselves.
A $58 Million Fraud
Brend, a Florida-based cryptocurrency salesman, was sentenced by a Manhattan federal judge for his involvement in promoting the $58 million Ponzi scheme. The judge stated that Brend’s actions in this “get rich quick” scam had hurt many people and posed the risk of future fraudulent behavior.
The Role of IcomTech’s Promoters
Rodriguez is said to have designed IcomTech’s digital interface, while Brend acted as a face-to-face salesman, promoting the fraudulent business and its supposed lucrative returns.
Promoters made the scheme seem legitimate by attending high-end expos in luxury cars and wearing expensive clothing, giving the illusion of financial freedom for investors.
The Scheme’s Collapse
However, by August 2018, the scheme began to unravel as investors found it difficult to withdraw their funds. In response, IcomTech introduced proprietary crypto-tokens, claiming they would inject liquidity into the platform. These tokens, however, had no real value and caused further financial losses for victims.
By the end of 2019, investors stopped receiving funds entirely.
Other Sentences and Financial Restitution
Rodriguez, who was involved in orchestrating the scheme, was sentenced to eight years in prison on October 31, 2024. He was also ordered to pay $40,000 in restitution. Brend faces similar financial penalties, with his forfeiture to be determined later by a judge.
Justice for the Victims
U.S. Attorney Damian Williams emphasized that Brend and Rodriguez, working together, defrauded thousands of people out of millions of dollars. Both were found guilty by a unanimous jury and will now serve significant prison sentences for their crimes.
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