The former executive director of IcomTech, Marco Ruiz Ochoa, admitted to deceiving investors through a cryptocurrency pyramid. According to the U.S. Department of Justice.
According to court filings, 35-year-old Ochoa, along with his co-conspirators, promised clients daily returns on investments in cryptocurrency trading and mining. However, IcomTech conducted no investment activity, and its founders spent the funds on themselves.
To sustain the appearance of a successful company, promoters appeared at events in expensive cars and wearing luxury clothing.
From 2018, IcomTech clients attempted to withdraw funds but faced various excuses and delays, as well as the need to pay a previously undisclosed commission.
By the end of 2019, the pyramid collapsed.
Ochoa pleaded guilty to one count of conspiracy to commit fraud using electronic communications. He faces up to 20 years in prison.
In May, the CFTC also brought charges against Ochoa and other IcomTech executives, including David Carmona, Juan Arellano Parra, and Moises Valdez. The agency said that their scheme targeted Spanish-speaking communities.
Earlier ForkLog reported that the U.S. District Court for the Southern District of New York sentenced the co-founder of the international cryptocurrency pyramid AirBit Club Pablo Renato Rodriguez to 12 years in prison. He promised daily earnings from investments in cryptocurrency trading and mining.