A federal court sentenced David Brend to ten years in prison for his role in a bitcoin Ponzi scam tied to IcomTech, a fraudulent investment website. The court convicted Brend of wire fraud conspiracy and ordered him to report to a federal prison in Florida on December 16 to start serving his sentence. In addition, he must lose $40,000 as part of his sentence.
The fraud ran from 2018 to 2019, misrepresenting IcomTech as a cryptocurrency mining and trading platform with guaranteed earnings. Brend and other promoters traveled across the country, hosting lavish gatherings and showcasing opulent lifestyles to entice victims. They claimed that IcomTech’s products would provide “financial freedom,” but in a classic Ponzi scheme, they used funds from new investors to repay those from previous ones.
Brend was a prominent salesman, while co-conspirator Gustavo Rodriguez oversaw the platform’s digital interface. They deceived thousands of individuals, embezzling millions of dollars to fund their personal expenses, including luxury goods and real estate.
The fraud’s consequences prevented victims from withdrawing their assets, and the platform ultimately introduced worthless proprietary tokens in an unsuccessful attempt to regain liquidity. By the end of 2019, disbursements had completely ended, leaving investors with huge losses.
The scheme’s mastermind, David Carmona, received a 10-year sentence earlier this year, and Rodriguez received an eight-year sentence in October. A jury trial found Brend and Rodriguez guilty in March.
U.S. Attorney Damian Williams emphasized the gravity of their crimes, claiming that these sentences serve as a deterrent to future cryptocurrency fraud. Brend’s conviction emphasizes the necessity of remaining vigilant in the cryptocurrency market, where fraudulent schemes can have disastrous financial effects for naive investors.
