Summary
Former IcomTech CEO Marco Ruiz Ochoa has been sentenced to five years in prison for his involvement in promoting the crypto firm, which federal prosecutors say operated like a Ponzi scheme. Ochoa pleaded guilty to wire fraud and was also sentenced to two years of supervised release and ordered to forfeit $914,000 in criminal proceeds. IcomTech promised investors profits in exchange for purchasing cryptocurrency-related investment products, but its crypto trading and mining business did not exist. When investors tried to withdraw their money, they faced excuses, delays, and hidden fees. The Commodity Futures Trading Commission also brought charges against Ochoa and other IcomTech executives.
Key Points
1. Former IcomTech CEO Marco Ruiz Ochoa was sentenced to five years in prison for his role in promoting the crypto firm, which federal prosecutors say was run like a Ponzi scheme.
2. Ochoa pleaded guilty to wire fraud and was also sentenced to two years of supervised release and ordered to forfeit $914,000 in criminal proceeds.
3. IcomTech promised investors profits in exchange for their purchase of “purported cryptocurrency-related investment products,” but the company’s crypto trading and mining business did not exist, and investor money was used for other schemes and personal expenditures.
Promoting the company:
– Promoters for IcomTech displayed a lavish lifestyle, arriving at events in expensive cars and luxury clothes to create an appearance of success.
– The atmosphere at these events was designed to generate excitement about the schemes.
– When investors tried to withdraw their money, they encountered excuses, delays, and hidden fees.
– Despite complaints, IcomTech promoters, including Ochoa, continued to promote the company and accept investments until it ultimately collapsed.
The Commodity Futures Trading Commission (CFTC) also brought charges against Ochoa and other IcomTech executives for targeting Spanish-speaking communities.