Icomtech founders sentenced for $58M Ponzi scheme fraud

David Brend and Gustavo Rodriguez, key figures in the Icomtech Ponzi scheme, have been sentenced to 10 and 8 years in prison, respectively, for defrauding thousands of investors. 

Icomtech falsely presented itself as a cryptocurrency trading and mining company, promising guaranteed daily returns to lure victims. 

Investors were attracted by extravagant events and the allure of wealth, leading them to invest through online portals that displayed fabricated profits. 

However, instead of generating returns, funds were diverted for luxury purchases, real estate, and further promotion of the fraudulent scheme. 

As complaints from investors mounted, Icomtech introduced worthless proprietary tokens, exacerbating the financial losses before the scheme ultimately collapsed in 2019.

U.S. Attorney Damian Williams characterized Brend as the public face of the fraud and Rodriguez as its architect. 

Both individuals also face additional restitution and forfeiture orders following their sentencing.

The scheme reportedly defrauded investors out of approximately $58 million, with many victims left financially devastated. 

During the trial, prosecutors highlighted how Icomtech organizers hosted lavish events to attract potential investors while showcasing their supposed success with expensive cars and luxury clothing.

When investors attempted to withdraw their funds, they encountered delays, excuses, and unexpected fees. 

Despite increasing complaints, Icomtech continued to solicit investments until its eventual downfall.