According to Cointelegraph: David Brend and Gustavo Rodriguez, former promoters of the alleged crypto firm IcomTech, have been found guilty of wire fraud conspiracy by a New York jury. The conviction could have them facing a maximum sentence of 20 years in prison for their role in what has been revealed as a Ponzi scheme.
Source: U.S. Attorney SDNY on X
The trial, which lasted two weeks, ended on March 14 when the jury at a New York District Court delivered a guilty verdict against Brend and Rodriguez. Each has been charged with one count of conspiracy to commit wire fraud.
A press release from the U.S. Attorney's Office for the Southern District of New York, issued on March 15, stated that IcomTech founder David Carmona hired Rodriguez in mid-2018 to develop a website for promoting IcomTech, a newly launched firm presenting itself as a crypto mining and trading entity.
Brend, Carmona and others enticed IcomTech's investors claiming the company's guaranteed daily returns through their supposed crypto mining and trading activities.
Prosecutors unrevealed this to be a Ponzi scheme, concluding that no significant crypto trading or mining activities occurred, instead, new investor funds were used to pay previous investors.
As per the allegations, Rodriguez aided in determining the pricing for so-called "investment packages" and unreal daily returns shown to investors via the site and his administered portal. Meanwhile, Brend and other promoters pocketed substantial amounts of victim funds, often amounting to hundreds of thousands of dollars.
The seized money was misused for extravagant ventures, including real estate purchases, travel, organizing opulent expos, and community presentations, during which luxury vehicles and lavish attire were used in attempts to attract further investments.
Sentences for Brend and Rodriguez are scheduled for June 27 and June 28, respectively. IcomTech's former CEO Marco Ochoa received a five-year sentence in January after pleading guilty to conspiracy to commit wire fraud. Similarly, founder Carmona, admitted his guilt regarding wire fraud conspiracy in December.
