The saga of the fraudulent cryptocurrency scheme known as IcomTech, which conned numerous investors out of their money, has culminated in significant prison sentences for two key players. According to the U.S. Attorney's Office for the Southern District of New York, David Brend and Gustavo Rodriguez were convicted and sentenced to 10 years and eight years in prison, respectively, for conspiracy to commit wire fraud in relation to their roles in the operation.
The verdict was delivered after a two-week trial in March, where evidence presented evidently showed the extent of the defendants' deception. U.S. Attorney Damian Williams stated, "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." Their actions reportedly defrauded thousands and siphoned off millions of dollars into their own pockets, as detailed by the U.S. Attorney's Office. The scheme's unraveling promises and the subsequent collapse left many investors stranded.
Introduced in mid-2018, IcomTech was masquerading as a cryptocurrency mining and trading company. The organization lured victims with guaranteed daily returns on investments that, in truth, were non-existent. Instead, investor money was cycled to pay other victims and fund the lifestyles of the promoters like Brend. According to the evidence, the promoters used their ill-gotten gains on luxuries such as high-end vehicles and apparel, falsely showcasing these as proceeds from a successful business venture.
Victims were persuaded to pour money into the scheme via various means including cash, checks, wire transfers, and actual cryptocurrency. They were subsequently given access to an online portal to monitor their fictitious returns. However, many found themselves unable to withdraw those supposed profits. As trust waned and complaints rose, IcomTech attempted to pivot by pushing a proprietary crypto-token called "Icoms" which ultimately proved to be worthless. The operation buckled by the end of 2019, leaving a trail of financial destruction in its wake.
In the fallout from the scheme's collapse, Rodriguez, 48, and Brend, 50, are facing not only prison time but also financial retribution. The court has ordered Rodriguez to forfeit $40,000, representing his direct proceeds from the crime, and both defendants are expected to pay restitution, with the exact amounts to be decided by Judge Jennifer L. Rochon in upcoming proceedings. The case was led by the Office's Illicit Finance and Money Laundering Unit, and the prosecution team was appreciated for their efforts by Mr. Williams. The investigation also received support from the Homeland Security Investigations' El Dorado Task Force, the Securities and Exchange Commission, and the Commodity Futures Trading Commission.
