David Carmona, the mastermind behind the infamous Icomtech cryptocurrency Ponzi scheme, has been handed a harsh sentence of over 10 years in prison for deceiving investors with false promises of lucrative returns. The scheme specifically targeted hard-working individuals with the enticing prospect of financial independence through cryptocurrency trading and mining, activities that were never actually carried out. Carmona and his associates organized extravagant expos to lure in more victims, all while using the investments of new participants to pay off earlier ones.
Icomtech Ponzi Scheme Leader Receives Lengthy Prison Term
The U.S. Attorney’s Office for the Southern District of New York made a significant announcement last Friday, revealing that David Carmona, the founder of the Icomtech Ponzi scheme, has been sentenced to 121 months behind bars. The sentence, handed down by U.S. District Judge Jennifer L. Rochon, was the result of Carmona’s fraudulent activities that enticed investors with false promises related to cryptocurrency profits.
U.S. Attorney Damian Williams provided insight into Carmona’s deceptive tactics, stating, “David Carmona orchestrated the IcomTech cryptocurrency Ponzi scheme, which targeted working-class individuals by offering them the illusion of complete financial freedom in exchange for their hard-earned money.” Williams went on to explain:
Carmona assured his victims that their funds would be utilized for cryptocurrency trading and mining, leading to substantial profits and a doubling of their investments within six months. However, the truth was far from Carmona’s claims. Icomtech was nothing more than a web of lies.
Carmona launched Icomtech back in 2018, presenting it as a legitimate cryptocurrency mining and trading venture. Prosecutors revealed that “Carmona and his fellow promoters of Icomtech falsely guaranteed their victims daily returns on investments and the doubling of their funds within a six-month period through purported cryptocurrency activities.”
Despite these promises, Icomtech never engaged in any actual trading or mining operations, as confirmed by the Attorney’s Office. Instead, Carmona and his accomplices utilized fresh investments to pay off earlier participants and perpetuate the fraudulent scheme. The team went to great lengths to attract more victims, showcasing luxury cars and designer clothing at lavish expos and presentations to maintain the facade of success.
The scheme eventually unraveled by the end of 2019, leaving victims unable to retrieve their investments and holding onto worthless tokens. Despite mounting complaints, the promoters of Icomtech continued to solicit investments. The Attorney’s Office emphasized:
Alongside the prison sentence, Carmona, a 41-year-old resident of Queens, New York, has also been sentenced to 3 years of supervised release.
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