Key Highlights
- Senior IcomTech promoter Magdaleno Mendoza was sentenced to 71 months in prison for wire fraud conspiracy and illegal reentry.
- IcomTech ran a 2018–2019 Ponzi scheme posing as a crypto firm, promising big profits while using new funds for payouts.
- Mendoza’s case follows convictions of IcomTech Founder David Carmona’s 121 months, highlighting federal crackdowns on crypto scams targeting vulnerable communities.
A federal judge has sentenced Magdaleno Mendoza, a senior promoter in the notorious IcomTech cryptocurrency Ponzi scheme, to 71 months (5 years and 11 months) in prison. The ruling marks another chapter in the downfall of one of the crypto industry’s most damaging frauds, which targeted vulnerable working-class communities with promises of guaranteed riches.
The U.S. District Judge Jennifer L. Rochon handed down the sentence on December 18, following Mendoza’s guilty plea to conspiracy to commit wire fraud and illegal reentry into the United States.
Prosecutors described Mendoza, 56, as a key figure who closely collaborated with IcomTech Founder David Carmona, hosting lavish recruitment events at his Los Angeles-area restaurant and collecting substantial cash investments from victims.
Mendoza’s sentence addressed his history of illegal U.S. reentries after multiple deportations. He was ordered to pay $789,218.94 in restitution and forfeit $1.5 million, including his California home purchased with scheme proceeds. Prosecutors also noted Mendoza promoted at least three additional Ponzi schemes post-IcomTech.
IcomTech’s orchestrated ponzi scheme
Operating from mid-2018 to late 2019, IcomTech masqueraded as a legitimate cryptocurrency mining and trading firm. During its runtime, promoters lured investors by promising daily profits, doubling of investments within six months, and access to an online portal displaying fictitious gains.
The scheme predominantly targeted Spanish-speaking individuals with limited investment experience. In reality, no actual trading or mining occurred. New investor funds were used to pay returns to earlier participants, while promoters siphoned millions for personal luxury, including exotic cars and opulent expos.
As withdrawal requests mounted in late 2018, victims faced delays, excuses, and fees. IcomTech introduced a worthless proprietary token called “Icoms” as a purported fix, only deepening losses. The scheme collapsed by the end of 2019, leaving thousands defrauded of millions.
U.S. Attorney Jay Clayton emphasized Mendoza’s exploitation of trust: “By exploiting the promise of ‘crypto,’ he and his co-conspirators stole millions from working-class people, including New Yorkers.”
History of lawsuit against IcomTech
The case builds on prior convictions, with IcomTech’s Founder David Carmona receiving 121 months (10 years and 1 month) in 2024, former CEO Marco Ruiz Ochoa receiving a five year sentence. Other promoters David Brend and Gustavo Rodriguez also faced lengthy terms.
As reported by The Crypto Times previously, the initial charges against IcomTech operators were announced in May 2023, after the conviction of promoters in March 2024 and Ochoa’s sentencing in January 2024. This sentencing underscores federal authorities’ intensified crackdown on crypto frauds exploiting hype and underserved communities, serving as a stark reminder for investor caution.
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