David Carmona, founder of IcomTech, was sentenced to 10 years in prison for orchestrating a Ponzi scheme that defrauded numerous investors between 2018 and 2019.

The Story of IcomTech

Launched in 2018, IcomTech gained popularity through promotional events. David Carmona promised investors about 1% daily returns. The scheme targeted primarily working-class individuals. Over time, the scheme turned into a Ponzi scheme, using funds from new investors to pay off earlier participants.

The Scheme and Its Consequences

When investors could not withdraw their profits from the portal, complaints surged. Carmona cited hidden fees and delays as the cause. To address the situation, a new token called Icoms was released, intended as a mode of payment. However, it turned out to be a larger failure. By 2019, the scheme faced financial losses and collapsed, leaving many in distress.

Court Verdict

Judge Damian Williams of the Attorney’s Office for the Southern District of New York presided over the case. Williams stated that the IcomTech scheme preyed on vulnerable communities, leaving them in financial ruin. Carmona was ordered to forfeit his assets and provide reparation to the victims. In addition to his prison term, Carmona was sentenced to three years of supervised release.

The trial of IcomTech highlighted the need to protect vulnerable groups from financial exploitation, emphasizing the prosecution of those who prey on investor trust.