iComTech was a business model specialized in cryptoassets and blockchain technology that offered its services to Spanish-speaking users, particularly in Latin America and the United States. However, it turned out to be a completely fraudulent ponzi scheme dedicated to deceiving its customers.
The company, which marketed itself as an exclusive cryptocurrency MLM model, offered daily returns of up to 2.8% and enticed users with typical pitches of sophisticated mining and cryptocurrency trading that any type of person could access.
According to the Grand Jury indictment against David Carmona, iComTech was a ponzi scheme.
A fraudulent model in which neither Carmona nor the rest of his team members traded or mined cryptocurrencies. On the contrary, they used their clients’ money to spend it on entertainment and luxuries in their personal lives.
All indications are that the only time iComTech came close to earning revenue from mining digital assets was when they signed a hardware deal for trading purposes.
David Carmona and Marco Ruiz Ochoa, another of his collaborators, claimed to have purchased cryptocurrency mining equipment from a legitimate supplier in September 2018, and promoted IcomTech’s purported investment in such hardware with the aim of generating interest and attracting attention among potential customers to invest in iComTech.
However, iComTech failed to meet its payment obligations to the mining equipment supplier and never received any cryptocurrency mining hardware, but Carmona and Ochoa continued to sell the idea of the company’s supposed investment with the supplier.
They even ignored warnings from representatives of the mining equipment supplier who threatened Carmona and Ochoa with legal action.
As if that were not enough, the same users reported having problems withdrawing their funds or claiming their “earnings” during 2019 through the company’s website. But the promoters of iComTech: David Brend, Juan Arellano and Moises Valdez scammed users by telling them that IcomTech would no longer credit accounts with Bitcoin, but with a cryptocurrency of its own known as “Icoms”.
By now, David Brend, Juan Arellano, Marco Ruiz Ochoa, Moises Valdez, members of the iComTech team, have been arrested over the past few days and have been summoned to appear before U.S. authorities on charges of wire fraud.
In an iComTech conference call, during which an investor confronted David Brend, Brend indirectly admitted that he “knew IcomTech was a scam”.
- What is a Ponzi scheme?
A Ponzi scheme is a form of pyramid scheme. This model promises very high profits or interests, for all clients, and these are covered with the arrival of new users or investors.
The Ponzi scheme works as long as new members are integrated to the team, in this way the interests are paid with the resources of the people that are integrated, until the system ends up collapsing.
Each time the new investors’ money is used to pay the old investors, the swindler or swindlers keep part of the money as a commission.