IcomTech Promoter Sentenced for Crypto Ponzi Scheme
- Magdaleno Mendoza was sentenced to 71 months in federal prison for his role in the IcomTech Ponzi scheme.
- The scheme promised guaranteed returns from crypto mining and trading but resulted in millions of dollars in losses.
- Mendoza was ordered to pay $789,218.94 in restitution and forfeit $1.5 million, including his residence purchased with scheme proceeds.
- He had previously promoted at least two other crypto Ponzi schemes before IcomTech collapsed at the end of 2019.
- Several co-conspirators, including founder David Carmona, have been convicted and sentenced for their roles.
Mendoza’s sentence reflects the severity of his actions within the IcomTech Ponzi scheme, which targeted working-class Spanish-speaking investors by falsely promising guaranteed returns from crypto activities. The case highlights ongoing challenges in combating fraudulent schemes that exploit community trust and limited access to financial resources.
The court’s decision underscores a focus on traditional fraud factors such as scale, duration, and victim harm over the ‘crypto’ label itself. Source
