IcomTech executives ordered to pay over $5 million for fraud

A California court has mandated that five individuals involved in IcomTech’s fraudulent Bitcoin (CRYPTO:BTC) trading scheme pay over $5 million for their roles in the scam. 

The court's default judgment, issued on October 21, found David Carmona, Juan Arellano Parra, Moses Valdez, and David Brend liable for violating the Commodity Exchange Act and Commodity Futures Trading Commission (CFTC) regulations.

Marco A. Ruiz Ochoa received a consent order in connection with the case.

The CFTC's lawsuit, filed on May 24, 2023, revealed that the five defendants fraudulently solicited over $1 million from approximately 190 individuals in the U.S. and abroad. 

They falsely promised investors that their funds would be invested in Bitcoin and other cryptocurrencies through a non-existent mining and trading platform.

Instead of delivering on these promises, they misappropriated a significant portion of the victim funds, estimated at around $8.4 million by December 2022.

As part of the court's ruling, Carmona, Arellano Parra, Valdez, and Brend will each pay a civil monetary penalty of $1 million. 

Additionally, they will collectively pay about $1 million in restitution to the victims, bringing the total financial penalties to over $5 million.

All five individuals have been permanently banned from registering with the CFTC and from trading in any CFTC-regulated markets.

This legal action follows Carmona's sentencing to 10 years in prison for conspiracy to commit wire fraud in October. 

Rodriguez was sentenced to eight years on October 31, while Brend received a 10-year sentence on December 2.

Ochoa was sentenced to five years in prison in January for his involvement in the conspiracy.

IcomTech operated between mid-2018 and late 2019, promising investors a guaranteed 100% return every six weeks. 

The operators often hosted extravagant expos across the U.S. and internationally to attract victims, showcasing their supposed wealth through expensive cars and luxurious attire while boasting about their profits.