Former IcomTech Promoters Convicted of Wire Fraud Conspiracy

A New York jury has delivered guilty verdicts against David Brend and Gustavo Rodriguez, former promoters of the alleged crypto mining and trading company IcomTech, for their involvement in a wire fraud conspiracy. The conviction carries a maximum sentence of 20 years for each defendant, marking the culmination of a two-week trial in a New York District Court.

The U.S. Attorney’s Office for the Southern District of New York revealed that IcomTech, purportedly a crypto mining and trading firm, was actually a Ponzi scheme orchestrated by its founder, David Carmona. Rodriguez, hired by Carmona in mid-2018, played a pivotal role in creating a website and maintaining a portal that falsely displayed guaranteed daily returns from crypto trading and mining.

Brend and other promoters of the scheme allegedly diverted substantial sums of investor funds for personal use, including purchasing real estate, extravagant travel, and hosting lavish events to entice further investments. As complaints mounted and IcomTech collapsed in 2019, investors found themselves unable to withdraw their funds, leading to substantial losses.

The U.S. Attorney for the Southern District of New York, Damian Williams, emphasized the scale of the fraud, which defrauded tens of thousands of individuals out of millions of dollars. The convictions underscore the importance of regulatory vigilance in safeguarding investors and holding accountable those who engage in fraudulent activities within the cryptocurrency industry.

With sentencing scheduled for June, the outcome of this case serves as a cautionary tale against the perils of fraudulent schemes and highlights the ongoing efforts to uphold integrity and accountability in the crypto space.