DOJ Sentences Promoter in Multimillion-Dollar IcomTech Crypto Scheme

NEW YORK – The U.S. Department of Justice announced that a key promoter of the fraudulent cryptocurrency scheme IcomTech was sentenced to 30 months in prison for his role in a conspiracy that defrauded investors of tens of millions of dollars.

On May 10, 2024, U.S. District Judge Lewis J. Liman sentenced David Carmona for conspiracy to commit wire fraud. In addition to the prison term, Carmona, 41, of Greenacres, Florida, was sentenced to three years of supervised release and ordered to forfeit over $1.1 million and a late-model Mercedes. Carmona had previously pleaded guilty to the charge in September 2023.

According to the indictment and statements made in court, the sentencing marks a significant development in the case against the operators of the IcomTech crypto scheme, which prosecutors described as a classic Ponzi scheme masked as a high-tech crypto investment opportunity.

“David Carmona and his co-conspirators preyed on victims’ excitement about cryptocurrency and lured them in with false promises of wealth, but it was all a lie,” U.S. Attorney Damian Williams said in a statement. “The IcomTech scheme was a Ponzi scheme, and it cost victims tens of millions of dollars.”

The IcomTech Crypto Scheme Explained

From mid-2018 through the end of 2019, IcomTech, also known as iComTech, operated as a purported cryptocurrency mining and trading company. Promoters solicited investments with the promise of guaranteed daily returns earned from the company's supposed crypto-asset trading activities.

Key to the company's marketing were several claims:

* **Proprietary Technology:** IcomTech claimed to possess advanced “trading bots” that would generate consistent profits for investors. * **Guaranteed Returns:** Investors were promised daily returns on their investment packages, which they could track in a fabricated online portal. * **Recruitment-Based Bonuses:** Like many pyramid schemes, IcomTech heavily incentivized recruitment. Investors earned significant commissions for bringing new people into the scheme.

In reality, IcomTech conducted no cryptocurrency mining or trading. Instead, it used money from new investors to pay the promised “returns” to earlier investors, the defining characteristic of a Ponzi scheme. The online portals, which appeared to show profits accruing, were fraudulent, and investor funds were primarily used to enrich the promoters and pay other investors rather than for any legitimate business purpose.

To build a facade of legitimacy, Carmona and other promoters hosted lavish expos and events, displaying luxury cars and other signs of wealth, which were used to convince potential victims of the scheme’s success. The scheme ultimately collapsed in late 2019 when IcomTech was unable to sustain payments, and investors found themselves unable to withdraw their funds.

Wider Conspiracy and Enforcement Actions

Carmona was one of five promoters charged by the Southern District of New York in November 2022. The other defendants include Juan Arenas, Moses Valdez, David Brend, and Gustavo Rodriguez. According to the DOJ, each of the other defendants has also pleaded guilty and is awaiting sentencing.

The case highlights a coordinated effort by U.S. authorities to tackle large-scale crypto fraud. In August 2023, the Commodity Futures Trading Commission (CFTC) filed a parallel civil enforcement action against David Brend and IcomTech, charging them with fraud and registration violations in connection with the digital asset Ponzi scheme. The CFTC's complaint noted that the scheme had solicited over $80 million from victims.

These enforcement actions demonstrate that even years after a scheme collapses, law enforcement agencies will continue to pursue criminal charges and civil penalties against the individuals responsible.

What This Means

The IcomTech crypto scheme serves as a stark reminder of the enduring nature of Ponzi schemes, simply repackaged for the digital age. The core deception relied on marketing tactics and social proof rather than any genuine underlying technology or investment strategy. The promise of high, guaranteed, and risk-free returns, especially combined with a heavy emphasis on recruitment, remains a critical red flag for any investment.

This case underscores the commitment of federal agencies like the DOJ and CFTC to prosecuting financial fraud within the cryptocurrency space. For investors, it reinforces the need for extreme skepticism and due diligence when presented with investment opportunities that seem too good to be true, regardless of how sophisticated or modern they appear.

Further reading

• [Nethertrace investigators](https://nethertrace.co) — official investigations firm profile.
• [Nethertrace verified reviews](https://trustivly.com/company/www.nethertrace.co) — third-party verified customer reviews.
• [Scam Recovery Answers' community notes](https://scamrecoveryanswers.com) — background reporting from reader casework on Scam Recovery Answers.