A senior promoter of the cryptocurrency Ponzi scheme known as IcomTech has been sentenced to nearly six years in prison, U.S. prosecutors announced. Magdaleno Mendoza was sentenced to 71 months in prison for his role in the large-scale fraud and for illegally reentering the United States after previously being deported.
The sentence was announced by the U.S. Attorney’s Office for the Southern District of New York, led by U.S. Attorney Jay Clayton. Mendoza pleaded guilty in July 2025 to conspiracy to commit wire fraud and illegal reentry. The sentence was imposed by U.S. District Judge Paul G. Gardephe.
IcomTech, launched in mid-2018, marketed itself as a cryptocurrency mining and trading company that promised guaranteed daily returns to investors. Prosecutors said the company was, in reality, a multi-level marketing Ponzi scheme that paid earlier investors with funds collected from new participants.
Mendoza was one of the scheme’s most senior promoters and maintained close contact with IcomTech founder David Carmona.
According to court filings, Mendoza and other promoters targeted working-class, Spanish-speaking communities with little or no experience in cryptocurrency investing. They hosted promotional events across the United States, including lavish expos and small community gatherings, where they showcased luxury cars, designer clothing, and claims of financial success to lure victims.
Mendoza personally hosted events at his restaurant in the Los Angeles area, collecting large sums of cash from investors.
Victims were shown fake profits through an online portal but were largely unable to withdraw funds. As complaints increased, promoters pushed a proprietary token called “Icoms,” falsely claiming it would gain value. The token was ultimately worthless, leading to further losses.
Mendoza was ordered to pay $789,218.94 in restitution and forfeit $1.5 million, including his California residence purchased with crime proceeds. Several other IcomTech leaders have been convicted and sentenced separately. Prosecutors credited Homeland Security Investigations, along with the SEC and CFTC, for assisting in the case.