Nikolas Sargeant
A senior promoter behind the collapsed cryptocurrency platform IcomTech has been sentenced to nearly six years in federal prison for orchestrating a multimillion-dollar Ponzi scheme that targeted working-class, Spanish-speaking investors across the United States through false promises of guaranteed returns.
Magdaleno Mendoza received a 71-month prison sentence on Thursday, according to the US Attorney's Office for the Southern District of New York. Prosecutors stated Mendoza played a central role in promoting IcomTech, a purported cryptocurrency mining and trading company that launched in mid-2018 and collapsed by the end of 2019.
IcomTech promised investors guaranteed daily returns from cryptocurrency mining and trading operations. In reality, the platform functioned as a classic multi-level marketing Ponzi scheme, using funds from new investors to pay earlier participants while senior promoters diverted hundreds of thousands of dollars for personal use.
In addition to prison time, Mendoza was ordered to pay $789,218.94 in restitution to victims and forfeit $1.5 million, along with his home in Downey, California, which prosecutors said was purchased using proceeds from the fraudulent scheme.
Court filings show Mendoza was among IcomTech's most senior promoters and maintained close contact with founder David Carmona. He hosted recruitment events at his own restaurant in the Los Angeles area, collecting large amounts of cash from attendees who were lured by promises of financial freedom through cryptocurrency investments.
Promoters traveled nationwide hosting flashy promotional expos, arriving in luxury vehicles and wearing designer clothing to project an image of success. Investors were shown online dashboards displaying profits they could not actually withdraw, creating the illusion of legitimate returns while the scheme continued to attract new participants.
By August 2018, investors began encountering delays and excuses when attempting to cash out their supposed earnings. IcomTech responded by introducing a proprietary token called "Icoms," which promoters claimed would eventually be accepted for payments. The token ultimately proved worthless, further compounding investor losses when the platform collapsed.
The sentencing also covered Mendoza's illegal reentry into the United States after deportation. Prosecutors said he had been removed from the country four times, once using a false identity, and continued promoting cryptocurrency Ponzi schemes even after IcomTech's collapse, demonstrating a pattern of fraudulent activity.
Several other figures connected to IcomTech have already been convicted and sentenced. In October, founder David Carmona received a 10-year prison sentence for conspiracy to commit wire fraud. Gustavo Rodriguez, another IcomTech promoter, was sentenced to eight years on October 31, while David Brend received a 10-year sentence on December 2. In January, Marco Ochoa was sentenced to five years in prison for his role in the scheme.
Between 2018 and 2019, IcomTech promised investors a 100% return every six weeks, a rate prosecutors described as mathematically impossible to sustain through legitimate trading or mining operations. The platform's facade began crumbling in August 2018 as investors struggled to withdraw funds, exposing the fraudulent nature of the operation.
The IcomTech case exemplifies a wave of cryptocurrency-related fraud schemes that have targeted immigrant communities and working-class investors with limited financial literacy. Prosecutors emphasized that the promoters deliberately exploited trust within Spanish-speaking communities, using cultural connections and language familiarity to recruit victims who were less likely to report fraud or understand complex investment structures.
