IcomTech: Ponzi scheme organizer gets 10 years in prison
Date: 2024-12-05 Author: Gabriel Deangelo Categories: BUSINESS
David Brand, one of the key organizers of a Ponzi scheme related to the cryptocurrency platform IcomTech, was sentenced to 10 years in prison for conspiracy to commit wire fraud. The verdict was handed down in March, and the official statement of the sentence was published on Monday.
IcomTech was created in early 2018 and advertised as a cryptocurrency mining and trading platform that allegedly offered “guaranteed daily income” to investors. However, according to the US Attorney’s Office, no trading or mining took place on the platform. Instead, funds from new investors were used to pay old investors, promote the scheme, and enrich the organizers personally.
David Brand was the “face” of the company, making direct sales and promising significant profits to potential investors. While another participant in the scheme, Gustavo Rodriguez, developed the digital interface of the platform, Brand gave presentations at trade shows, appearing in expensive cars and luxury clothes, creating the illusion of financial success and reliability.
By the summer of 2018, many investors began to complain about the inability to withdraw their funds. To solve the problem, the organizers offered clients to buy their own IcomTech tokens, claiming that their value would increase over time. In fact, these tokens had no real value, and by the end of 2019, payments to participants in the scheme ceased completely.
In October 2024, Gustavo Rodriguez was sentenced to 8 years in prison and ordered to pay $40,000 in compensation to the victims. Now David Brand has joined him, who will have to serve a ten-year sentence. The amount of confiscation of Brand's property will be determined by the court later.
“David Brand and Gustavo Rodriguez, along with other organizers, defrauded thousands of people out of millions of dollars,” said U.S. Attorney Damian Williams. “They were both found guilty by a unanimous jury. They will now face the full consequences of their crimes.”
The IcomTech case has become yet another high-profile example of abuse in the cryptocurrency industry, reminding investors of the importance of carefully vetting any investment proposals.
