Fraud and Scams

Former Promoters Convicted in IcomTech Crypto Fraud Case

David Brend and Gustavo Rodriguez, former promoters associated with the IcomTech crypto enterprise, have been found guilty of wire fraud conspiracy by a New York jury. This conviction follows their involvement in the collapsed crypto mining and trading scheme, implicating them in what has been described as a Ponzi-style operation.

After a two-week trial, a New York District Court jury returned guilty verdicts against David Brend and Gustavo Rodriguez on March 14. The charges against them included conspiracy to commit wire fraud, each carrying a maximum penalty of 20 years in prison.

The U.S. Attorney’s Office for the Southern District of New York, in a press release on March 15, outlined the involvement of David Carmona, the founder of IcomTech, in recruiting Gustavo Rodriguez in 2018 to develop a website for the purported crypto mining and trading venture. Under the guise of offering guaranteed daily returns through crypto activities, Carmona, Brend, and their associates misled investors.

Prosecutors contended that rather than engaging in legitimate crypto trading or mining, IcomTech operated as a fraudulent scheme, utilizing funds from new investors to pay earlier ones. Rodriguez played a pivotal role in setting up investment packages and fabricating daily returns accessible through the website and a dedicated portal.

Meanwhile, Brend and other promoters allegedly diverted substantial sums of investor money for personal use, including real estate acquisitions, travel expenses, and extravagant events aimed at attracting more investors.

Investors were promised significant profits through IcomTech’s platform but encountered obstacles when attempting to withdraw funds, facing excuses and concealed fees. To compound matters, IcomTech introduced a token named “Icoms,” falsely claiming it could be used for transactions with partnering companies, ultimately leading to further financial losses.

According to Damian Williams, the U.S. Attorney for the Southern District of New York, the scheme defrauded tens of thousands of individuals out of millions of dollars, particularly affecting hardworking individuals seeking financial stability.

David Brend and Gustavo Rodriguez are awaiting sentencing, scheduled for June 27 and June 28, respectively. Their convictions add to the legal ramifications faced by individuals involved in the IcomTech scandal, following earlier guilty pleas from CEO Marco Ochoa and founder David Carmona for wire fraud conspiracy.

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