Marco Ruiz Ochoa, the former CEO of IcomTech, in a U.S. district court on Friday, received a five-year prison sentence for his involvement in a crypto firm, which, as federal prosecutors revealed, operated akin to a Ponzi scheme. This decision came after his September guilty plea to wire fraud charges.

IcomTech Fake Promises

IcomTech, posing as a cryptocurrency mining and trading enterprise, lured investors with the promise of profitable returns on their investments in what were claimed to be crypto-related products. Ochoa, aged 35, and his associates assured investors of daily returns from the firm’s supposed crypto trading and mining operations. 

However, this business was non-existent, diverting investor funds to unrelated schemes and personal expenses. The lavish lifestyle of IcomTech promoters, flaunting luxury cars and designer attire at events, was a strategy to foster a false image of success.

The Collapse of IcomTech

Investor troubles began in 2018 when withdrawal attempts were met with a barrage of excuses, delays, and unforeseen fees. Despite growing investor complaints, Ochoa and his team continued to endorse IcomTech, leading to the company’s eventual downfall by the end of 2019. IcomTech’s collapse exposed fraudulent activities and highlighted the risks associated with unverified crypto investments.

Additional Legal Repercussions

Furthermore, the Commodity Futures Trading Commission (CFTC) has also pressed charges against Ochoa, alongside other IcomTech executives like David Carmona, Juan Arellano Parra, and Moses Valdez.

A noteworthy aspect of the case is these executives’ targeting of Spanish-speaking communities. Consequently, Ochoa’s sentencing serves as a stern warning to others in the crypto space, emphasizing the seriousness of fraudulent activities and the legal ramifications.

Ochoa’s sentence, in addition, includes two years of supervised release and a forfeiture of $914,000 in criminal proceeds. This ruling by the U.S. district judge underscores the growing scrutiny and legal actions against fraudulent practices in the burgeoning field of cryptocurrency.

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The post Ex-IcomTech CEO Gets 5-Year Sentence for Crypto Scheme appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am