What a sham(e)! Two Defendants Sentenced to Prison for Cryptocurrency Ponzi Scheme “IcomTech”
United States Attorney for the Southern District of New York, Damian Williams, announced that defendants David Brend (50, of Tampa, Florida) and Gustavo Rodriguez (48, of North Hollywood, California) were sentenced to prison for 10 years and 8 years, respectively, for their involvement in a cryptocurrency Ponzi scheme named IcomTech. The sentences were given by the Honorable Jennifer L. Rochon after a two-week trial in March 2024. The defendants were also convicted of conspiracy to commit wire fraud.
Williams said: “David Brend and Gustavo Rodriguez were central to the IcomTech Ponzi scheme – Rodriguez as the chief architect of its sham website, Brend as a face-to-face salesman who peddled the bogus enterprise and its supposed lucrative returns for investors. Together with others, Brend and Rodriguez defrauded thousands of people out of millions of dollars. Both were found guilty by a unanimous jury. Now they will serve substantial prison sentences for their crimes.”
IcomTech started in mid-2018 when co-defendant David Carmona hired Rodriguez to build a website for the scheme. IcomTech touted itself as a cryptocurrency mining and trading company, promising to earn its victim-investors (“Victims”) daily profits in exchange for purchasing cryptocurrency-related investment products.
IcomTech’s promoters siphoned Victims’ funds to pay other Victims, fund themselves, and further promote the scam. They traveled extensively, hosting extravagant expos and smaller community events to lure new investors. At events, Victims were convinced by the false promises promoters made as they projected a curated image of financial freedom with luxury clothes and cars.
After purchasing, the Victims gained access to an online portal to view their returns. When Victims attempted to withdraw any money in 2018, they were unable to do so.
The promoters later levelled up by offering worthless proprietary crypto tokens called “Icoms,” meant to inject liquidity. Victims lost even more money, and the company stopped paying back altogether by the end of 2019, resulting in the company’s collapse.
In addition to the prison sentence, Rodriguez was ordered to pay $40,000, representing his direct proceeds from the crimes, plus a sum of victims’ restitution (to be determined). Brend will pay forfeiture and restitution in future amounts determined by Judge Rochon.
If you think you might have information on schemes, or would like to learn what it means to be a whistleblower, please contact the Constantine Cannon whistleblower lawyer team for a confidential consultation.
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