TL;DR
- Magdaleno Mendoza was sentenced to 71 months in prison for his role as a senior promoter of IcomTech, a crypto Ponzi scheme that operated under the guise of mining and trading.
- The Department of Justice said Mendoza coordinated and led investor recruitment within Spanish-speaking communities with no prior financial experience.
- In addition to the prison sentence, Mendoza must pay nearly $790,000 in restitution, forfeit $1.5 million, and surrender a home in California.
Magdaleno Mendoza was sentenced to 71 months in prison for his role as a senior promoter of the IcomTech crypto Ponzi scheme. The sentence was handed down in the Southern District of New York and brings to an end a fraudulent operation that operated for years under the appearance of a cryptocurrency mining and trading company.
According to the Department of Justice, Mendoza held a central position within the scheme’s commercial structure. He worked directly with founder David Carmona, took part in planning promotional events, and led investor recruitment across multiple U.S. cities. His primary role was to attract victims, particularly within working-class Spanish-speaking communities, many of whom had no prior investment experience.
IcomTech Targeted Victims Without Financial Experience
IcomTech began operating in 2018 with a simple and effective promise: guaranteed daily returns supposedly generated through crypto mining and trading activities. That activity never existed. Funds from new investors were used to pay earlier participants and to finance the promoters’ personal expenses, including travel, luxury cars, expensive clothing, and real estate purchases.
IcomTech’s structure relied heavily on in-person promotion. Promoters organized expos, community talks, and closed-door events where they displayed visible signs of wealth. Mendoza went as far as using his own restaurant in the Los Angeles area as a recruitment hub, where he collected thousands of dollars in cash. Investors were given access to a digital portal that displayed fictitious profits. In practice, most were unable to withdraw any funds.
Complaints over account freezes, delays, and hidden fees began as early as 2018. As liquidity dried up, the company launched its own token, called Icoms, marketed as a solution to unlock payments and create future value. The asset had no backing and ultimately amplified investor losses. By the end of 2019, the scheme had fully collapsed.
Consequences of the Fraud
Authorities estimate that at least 190 people were affected by the IcomTech scam and that the fraud exceeded $1 million, although the total damage is believed to be higher. Mendoza was not the only individual convicted. David Carmona received a 121-month prison sentence, and former CEO Marco Ruiz Ochoa was sentenced to five years, along with other promoters and collaborators.
In addition to prison time, Mendoza must pay nearly $790,000 in restitution, forfeit $1.5 million, and surrender his California residence.
