71 Months in Prison for Crypto Conman! 🚔💰

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Key Highlights

  • Senior IcomTech promoter Magdaleno Mendoza was sentenced to 71 months in prison for wire fraud conspiracy and illegal reentry. 
  • IcomTech ran a 2018-2019 Ponzi scheme posing as a crypto firm, promising big profits while using new funds for payouts. 
  • Mendoza’s case follows convictions of IcomTech Founder David Carmona’s 121 months, highlighting federal crackdowns on crypto scams targeting vulnerable communities.

It seems the fates of those who dabble in crypto schemes are as predictable as a Wodehouseian plot-full of twists, double-crosses, and a most agreeable turn of events for the authorities. Magdaleno Mendoza, a senior promoter in the notorious IcomTech cryptocurrency Ponzi scheme, has been sentenced to 71 months (5 years and 11 months) in prison. One might say it’s a fitting end for a man who, in his prime, could have been a most distinguished stage magician-except, of course, that he chose to swindle the innocent instead of merely distracting them with sleight of hand. 🎩🐇

The U.S. District Judge Jennifer L. Rochon, a most discerning arbiter of justice, handed down the sentence on December 18, following Mendoza’s guilty plea to conspiracy to commit wire fraud and illegal reentry into the United States. One imagines she might have sighed, “Another day, another conman,” while penning the verdict. 🧾

Prosecutors described Mendoza, 56, as a key figure who closely collaborated with IcomTech Founder David Carmona, hosting lavish recruitment events at his Los Angeles-area restaurant and collecting substantial cash investments from victims. One wonders if the restaurant’s wine list was as dubious as the investment opportunities. 🍷💸

Mendoza’s sentence addressed his history of illegal U.S. reentries after multiple deportations. He was ordered to pay $789,218.94 in restitution and forfeit $1.5 million, including his California home purchased with scheme proceeds. Prosecutors also noted Mendoza promoted at least three additional Ponzi schemes post-IcomTech. One might say he’s a man who never met a scam he didn’t like. 🕵️♂️

IcomTech’s orchestrated ponzi scheme 

Operating from mid-2018 to late 2019, IcomTech masqueraded as a legitimate cryptocurrency mining and trading firm. During its runtime, promoters lured investors by promising daily profits, doubling of investments within six months, and access to an online portal displaying fictitious gains. One might liken it to a particularly elaborate game of “hot potato,” with the potato being the investors’ hard-earned savings. 🧇

The scheme predominantly targeted Spanish-speaking individuals with limited investment experience. In reality, no actual trading or mining occurred. New investor funds were used to pay returns to earlier participants, while promoters siphoned millions for personal luxury, including exotic cars and opulent expos. One suspects the “opulent expos” were less about art and more about avoiding the IRS. 🚗🖼️

As withdrawal requests mounted in late 2018, victims faced delays, excuses, and fees. IcomTech introduced a worthless proprietary token called “Icoms” as a purported fix, only deepening losses. The scheme collapsed by the end of 2019, leaving thousands defrauded of millions. One might say it’s a tale as old as time-except time has a much better record of paying its debts. ⏳

U.S. Attorney Jay Clayton emphasized Mendoza’s exploitation of trust: “By exploiting the promise of ‘crypto,’ he and his co-conspirators stole millions from working-class people, including New Yorkers.” One might suggest that New Yorkers, being as shrewd as they are, should have known better. But then again, even the shrewdest can be lured by the siren song of quick riches. 🗽💰

History of lawsuit against IcomTech 

The case builds on prior convictions, with IcomTech’s Founder David Carmona receiving 121 months (10 years and 1 month) in 2024, former CEO Marco Ruiz Ochoa receiving a five year sentence. Other promoters David Brend and Gustavo Rodriguez also faced lengthy terms. It seems the IcomTech crew has a most unfortunate habit of ending up in the clink. 🛑

As reported by The Crypto Times previously, the initial charges against IcomTech operators were announced in May 2023, after the conviction of promoters in March 2024 and Ochoa’s sentencing in January 2024. This sentencing underscores federal authorities’ intensified crackdown on crypto frauds exploiting hype and underserved communities, serving as a stark reminder for investor caution. One might say it’s a reminder that, in the world of crypto, the only thing more volatile than the prices is the integrity of those peddling them. 🚨

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2025-12-19 15:34