US authorities have charged Nine individuals for founding or promoting two crypto mining and trading businesses that are allegedly Ponzi schemes that raised $8.4 million from investors.
The Southern District of New York’s U.S. Attorney’s Office unveiled the indictment on December 14, stating that IcomTech and Forcount, two alleged crypto mining and trading firms, made promises to investors of “guaranteed daily returns” that might quadruple their money in six months.
Prosecutors claim that both businesses were really paying early investors with money from later investors while utilizing other cash for company promotion, luxury purchases, and real estate purchases.
“Lavish expos” that promised investors financial independence and fortune were staged both domestically and internationally. These events were supplemented by presentations in small towns.
Promoters reportedly arrived at gatherings in pricey vehicles, dressed to the nines, and boasted about the profits they were generating from investing in the business they were pushing. A “portal” was made available to investors so they could track their profits.
User’s inability to withdraw their supposed refunds caused IcomTech and Forcount to start to break apart.
According to allegations made by the Securities and Exchange Commission (SEC) against Forcount’s creators and promoters, the business allegedly targeted primarily Spanish speakers and amassed over $8.4 million from “hundreds” of investors by offering “memberships” that included a share of its cryptocurrency trading and mining activities.
IcomTech and Forcount launched “Icoms” and “Mindexcoin,” respectively, in an effort to generate liquidity and try to recoup investors’ money.
As both companies ceased paying investors in 2021, it seems that the token sales were a failure.
U.S. Attorney Damian Williams said, “With these two charges, this Office is delivering a message to all crypto scammers: We are coming for you. “Stealing is stealing, even when it’s disguised in bitcoin terminology.”
IcomTech’s founder, David Carmona of Queens, New York, was charged with conspiracy to conduct wire fraud, a crime that carries a possible 20-year prison sentence.
Francisley da Silva, the creator of Forcount, is a native of Curitiba, Brazil. If found guilty of all allegations, he may spend up to 60 years in jail for wire fraud, conspiracy to commit wire fraud, and money laundering.
The firm’s promoters are accused of making false representations, conspiring to commit wire fraud and money laundering, and other offenses.
