IcomTech Executives Ordered to Pay Over $5 Million for Fraudulent Bitcoin Trading Scheme

Five individuals involved in the IcomTech Ponzi scheme have been ordered by a Californian court to pay more than $5 million in fines and restitution. This judgment comes after the Commodity Futures Trading Commission (CFTC) filed a lawsuit accusing the group of operating a fraudulent Bitcoin trading platform.
The Fraudulent Scheme
On October 21, 2023, a default judgment was issued against David Carmona, Juan Arellano Parra, Moses Valdez, and David Brend, who were found liable for violating the Commodity Exchange Act and CFTC regulations. Marco A. Ruiz Ochoa, another key figure in the scheme, was issued a separate consent order. The ruling follows the CFTC’s lawsuit filed in May 2023.
From mid-2018 to the end of 2019, IcomTech promised investors substantial returns through a fake cryptocurrency trading and mining platform. The operators fraudulently solicited over $1 million from 190 individuals in the United States and abroad, convincing them to invest in the nonexistent platform. Instead of using the funds for trading, the defendants misappropriated a significant portion of the money. By December 2022, the total funds misused were estimated to be around $8.4 million.
Financial Penalties and Restitution
As part of the court order, Carmona, Arellano Parra, Valdez, and Brend will each pay a $1 million civil penalty. Additionally, all five individuals, including Ochoa, are required to pay approximately $1 million in restitution to the victims, bringing the total amount to over $5 million. This settlement marks a critical step in holding the perpetrators accountable for their actions.
The five defendants have also been permanently banned from trading in any markets regulated by the CFTC or from registering with the commission in the future.
Prison Sentences for Key Operators
The default judgment is part of a larger series of criminal sentences handed down to IcomTech's operators. Carmona, the founder and "mastermind" of the Ponzi scheme, was sentenced to 10 years in prison for conspiracy to commit wire fraud in October 2023. Other key figures involved in the scheme, including Brend and Rodriguez, were also sentenced to significant prison terms, with Brend receiving 10 years in December, and Rodriguez receiving 8 years at the end of October. Ochoa was sentenced to five years in January for his role in the fraud.
IcomTech's Operation and Deceptive Tactics
IcomTech operated by making bold promises of returns, claiming that investors could earn 100% on their investments every six weeks. To lure victims, the operators hosted extravagant expos across the U.S. and overseas, often arriving at these events in expensive cars and designer clothing. They boasted of their financial success, enticing others to join in hopes of achieving similar results.
In total, the IcomTech operation targeted hundreds of individuals and used deceptive tactics to exploit their trust, ultimately resulting in millions of dollars in losses for investors.
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