Originally published on: December 12, 2024
A recent ruling in a California court has mandated that five individuals involved in IcomTech’s deceptive “Ponzi” scheme must pay more than $5 million for their roles in perpetrating fraud and misappropriating funds through a phony Bitcoin trading operation.
The judgment, issued on October 21 as a default order in response to a lawsuit filed by the Commodity Futures Trading Commission (CFTC) on May 24, 2023, holds David Carmona, Juan Arellano Parra, Moses Valdez, and David Brend accountable for violating the Commodity Exchange Act and CFTC regulations outlined in the complaint. Meanwhile, Marco A. Ruiz Ochoa has agreed to a consent order to resolve the allegations.
The scheme defrauded 190 individuals in the US and abroad, collecting over $1 million by falsely claiming to invest in Bitcoin and other cryptocurrencies via a nonexistent trading platform. Instead, the perpetrators misappropriated an estimated $8.4 million in December 2022.
As part of the judgment, Carmona, Arellano Parra, Valdez, and Brend are each facing a $1 million civil monetary penalty. They, along with Ochoa, are required to pay approximately $1 million in restitution to the victims, totaling more than $5 million.
Furthermore, all five individuals are permanently barred from registering with the CFTC and participating in CFTC-regulated markets.
This development follows the sentencing of Carmona to 10 years in prison for wire fraud conspiracy in October. Rodriguez received an eight-year sentence in October, while Brend was sentenced to 10 years in December. Ochoa was also handed a five-year prison term in January for his involvement.
IcomTech operated from mid-2018 through 2019, promising investors a 100% return on investment every six weeks. Operators of the scheme often traveled domestically and abroad, hosting extravagant expos to entice unwitting participants. They flaunted expensive cars, wore lavish attire, and boasted about their fictitious profits to lure investors into the fraudulent scheme.
The downfall of IcomTech sheds light on the dangers of fraudulent investment schemes in the cryptocurrency market. Stay informed about such developments by subscribing to our Markets Outlook newsletter for critical insights on investment opportunities, risk mitigation, and trading strategies delivered every Monday. By subscribing, you acknowledge and accept our Terms of Services and Privacy Policy.
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