TAMPA, Fla. — David Brend, 50, of Tampa, has been sentenced to 10 years in prison for his involvement in the IcomTech cryptocurrency Ponzi scheme. Brend, alongside his co-defendant Gustavo Rodriguez, was convicted of conspiracy to commit wire fraud after deceiving thousands of investors into participating in a fraudulent cryptocurrency mining and trading operation.
According to a press release from the U.S. Attorney’s Office, Southern District of New York, IcomTech operated from 2018 to 2019 and falsely promised significant returns from cryptocurrency investments. However, instead of generating returns through legitimate trading or mining operations, the scheme used funds from new investors to pay returns to earlier investors—a classic Ponzi structure. Brend and other promoters of the scheme misappropriated large sums of money for their personal benefit, contributing to the financial losses suffered by investors when the scheme collapsed by the end of 2019.
In addition to his prison sentence, Brend was ordered to pay restitution and forfeiture, with the exact amount yet to be determined. His co-defendant, Gustavo Rodriguez, who played a key role in creating the IcomTech website and promoting the fraudulent operation, was sentenced to 8 years in prison and ordered to pay $40,000 in forfeiture.
This case highlights the dangers of cryptocurrency-related scams, which have become increasingly common in recent years, as criminals exploit the complex and often unregulated nature of digital currency markets to defraud unsuspecting investors.