IcomTech Ponzi Scheme Promoter Sentenced to 71 Months in Prison
Magdaleno Mendoza, a senior promoter in the IcomTech cryptocurrency Ponzi scheme, received a 71-month prison sentence for wire fraud conspiracy and illegal reentry. U.S. District Judge Jennifer L. Rochon delivered the verdict on December 18, marking another conviction in a case that preyed on vulnerable communities with false promises of crypto riches.
The scheme, operated from 2018 to 2019 under founder David Carmona (previously sentenced to 121 months), masqueraded as a legitimate crypto investment firm while running classic Ponzi mechanics—using new investor funds to pay earlier participants. Mendoza hosted recruitment events at his Los Angeles restaurant, collecting cash investments while collaborating closely with Carmona.
Court documents reveal Mendoza must forfeit $1.5 million in assets and pay $789,218.94 in restitution. The sentencing also accounted for his history of illegal reentries after multiple deportations.
