The US Division of Justice introduced that Magdaleno Mendoza, a senior promoter of the cryptocurrency Ponzi scheme IcomTech, has been sentenced to 71 months in federal jail for his position within the fraud and for illegally reentering america after a number of deportations.
The sentence was imposed by US District Choose Paul G. Gardephe following Mendoza’s responsible plea in July to conspiracy to commit wire fraud and unlawful reentry.
IcomTech Ponzi Scheme
In keeping with the official assertion, Mendoza was among the many most influential promoters of IcomTech, a purported crypto mining and buying and selling enterprise that launched in mid-2018 and falsely promised traders assured every day returns. In actuality, authorities stated, the corporate operated as a multi-level advertising Ponzi scheme that used funds from new traders to pay earlier members and enrich its promoters, whereas conducting no respectable buying and selling or mining actions.
Mendoza, who had beforehand promoted different related schemes, performed a central position in recruiting victims, notably inside Spanish-speaking, working-class communities with little expertise in cryptocurrency investing. He and different promoters allegedly traveled throughout america. They hosted massive expos and small group conferences, the place they marketed IcomTech as a highway to “monetary freedom” and showcased luxurious automobiles, clothes, and existence to bolster credibility.
Prosecutors stated Mendoza personally hosted promotional occasions at his restaurant within the higher Los Angeles space and picked up hundreds of {dollars} in money from victims as supposed investments. Buyers got entry to on-line dashboards that displayed steadily rising “earnings,” however most had been unable to withdraw funds and in the end misplaced their whole investments, whereas promoters siphoned off a whole lot of hundreds of {dollars} for private use.
Nugatory Tokens, Jail Sentences, and Deportations
As withdrawal complaints mounted, IcomTech launched a proprietary token often called “Icoms,” which promoters claimed would achieve important worth. However authorities stated the tokens had been successfully nugatory and deepened investor losses.
By late 2019, IcomTech had stopped making funds and collapsed. The Justice Division additionally discovered that a number of of Mendoza’s co-conspirators, together with founder David Carmona and different senior figures, have already been convicted and sentenced in associated instances.
Prosecutors additionally stated that Mendoza had been dwelling in america illegally for many years whereas selling the scheme and had been deported or eliminated at the very least 4 occasions, together with as soon as beneath a false identification.
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