| For IcomTech Crypto
Ponzi US Asks 180 Months on
Rodriguez Now He Gets 96
Months
by
Matthew Russell Lee, Patreon Book
Substack
SDNY
COURTHOUSE,
Oct 31
– For a cryptocurrency
Ponzi scheme called IcomTech,
which held a promotional event
in or near NYC's Times Square,
David Carmona on December 21
pled guilty before U.S.
District Court for the
Southern District of New York
Judge Jennifer L. Rochon.
Inner City Press was there to
cover it - and a related
upcoming trial. But first,
pleas.
On January 12,
the US Attorney's Office wrote
in asking for Ruiz Ochoa a
sentence near the top of the
57 to 71 month range.
On January 19,
Inner City Press attended the
sentencing, to five years, thread
On March 11, the
cooperator of the witness
stand was asked by the
prosecution about a lengthy
Excel speadsheet, then cross
examined about money
laundering for drug dealers,
and buying cars including BMWs
and what he called a "Lambhor
jee-nee."
On March 12, the
government had on the stand a
witness who had bought into
IcomTech then made money
bringing in others "down line"
from her. On cross examination
she repeatedly asked to
provide longer explanations,
but was told that would have
to be on re-direct. But it may
be fast: by day's end it was
said that closings can be on
May 13.
And they were,
including Brend being
described, or shown, to be
demanding a $12 fee on top of
$3300 he was taking from a
victim. Next up: verdict.
In came late on
March 14, not without drama, here:
OK - now in case
of Brend / IcomTech, there's a
verdict sent out by jury-
along with a note expressing
concern about juror anonymity
and safety. Defense says this
is serious, wants time to
brief.
Defense counsel
cites a case he says was about
John Gotti and problems cause
by juror fear. Judge: I will
not grant a mistrial. I don't
see any indication of outside
influence. The note does not
say there is fear, only
concern about confidentiality
Judge: This
is very different than a juror
being approached by mobsters.
So I will take the verdict -
any concerns can be raised in
post-trial motions, depending
on what the verdict is. I will
direct the parties not to
contact the jurors. Defense:
We'd like to contact
Jury
entering! Judge: I have an
envelope, I'll now open it.
I'll ask my Deputy to hand the
verdict form to the
foreperson, please. On the
sole count of conspiracy to
commit wire fraud, Brend?
Guilty. Gustavo Rodriguez?
Guilty. [Jurors are polled]
[There are now US
Marshals in the back of the
courtroom - will the
prosecutors be asking for
immediate remand to prison?]
Judge: I thank you for your
decision making. You are free
of your obligation not to
discuss the case. It's up to
you
Jury leaves.
Judge: Does the government
have any applications? AUSA:
Now post verdict, see
3143(a)(1), the burden is on
the defendants. We think Mr.
Rodriguez should be detained.
Mr. Brend, we'd add home
detention, GPS in Tampa where
he lives.
AUSA: Mr.
Rodriguez is not a US citizen.
This is an aggravated felony;
he is presumptively
deportable. He faces a very
significant sentence here.
There's an enhancement for
over $25 million. He was
involved in other MLMs. He has
family in South America: 11
trips
Update: in
the middle of the post-verdict
remand arguments, a woman
walking out of the court room
collapsed, with her eyes
closed. 9-1-1 was called. She
was described as defendant
Brend's mother in law,
speaking only Portuguese. Now
a break has been taken
EMS
arrived: court resumes. AUSA:
Gustavo Rodriguez might just
flee to Argentina. Defense:
His 18 year old son is here,
willing to testify, he would
not leave him or his 16 year
old. Judge: There is a guilty
verdict, Mr Rodriguez will be
detained
Rodriguez'
lawyer: May my client speak
with the son before he is
remanded? To tell him how to
get home? Judge: Marshals, can
you wait a few minutes?
Marshal: Yes.
On March 22, the
US Attorney's Office argued
that the ban on contacting
jurors imposed after the
verdict should continue, that
they not be harassed by the
defeated party (citing Moten,
582 F.2d at 664). The only
exemption, they say, if if
racial animus is expressed,
not relevant here.
On June 18,
counsel for David Carmona who
pled wrote to the Probation
Department objecting to the
PSR, suggest a guideline of 41
to 51 months and noting that
"as to paragraph 75, the
matter for which Mr. Carmona
was arrested in Las Vegas,
Nevada was dismissed and
sealed." But the PSR still
picked it up...
On July 29 David
Brend got a Fatico hearing on
loss amounts, appearing for it
by video. Inner City Press was
in the courtroom, from the
thread:
US describing
"underestimated" loss
amount...
Judge Rochon:
What about conscious
avoidance?
Assistant US
Attorney: It doesn't reduce
the loss amount... Brend sent
WebEx invites as widely as
possible
On September 20,
counsel for Cardona wrote in
asking for a two year sentence
on October 4.
On September 27,
the US asked for 188 months on
Cardona.
On October 3,
Gustavo Rodriguez's requests
got shot down: "ENDORSED
LETTER as to Gustavo Rodriguez
addressed to Judge Ross from
Attorney Jeffrey Cohn dated
October 1, 2024 re: I write to
request that the Court adjourn
sentencing in the
above-referenced case and set
a date for a hearing on Mr.
Rodriguez' pending motions
pursuant to Rules 29 and 33 of
the Federal Rules of Criminal
Procedure. It is Mr.
Rodriguez' intention to
testify at the proposed
hearing. As regards the timing
of this letter, shortly after
undersigned counsel was
retained, Mr. Rodriguez had
proposed meeting with the
government and it was only
yesterday that the government
informed me that it refused to
meet with him. ENDORSEMENT:
The request to adjourn
sentencing is DENIED.
Defendant was found guilty on
March 14, 2024 and the
sentencing date has already
been repeatedly adjourned in
this case. Therefore, it will
not be moved. The Court will
hear argument on Defendant's
Rule 29 and Rule 33 motions on
October 11, 2024 at 11:00 a.m.
SO ORDERED. ( Motion Hearing
set for 10/11/2024 at 11:00 AM
before Judge Jennifer L.
Rochon. ) (Signed by Judge
Jennifer L. Rochon on
10/3/2024) "
On October 4,
Cardona was sentenced to 121
months. From Inner City Press'
thread:
AUSA: Mike
Myersnow at sentencing of
Carmona in Icomtech Ponzi
case, he is already in
detention. Prosecutor just
quoted "Wayne's World." says,
tell two friends, and they
tell two friends. That's what
happened here, a Ponzi. His
loss amount is over $25
million.
Judge: That may
be under reported. This scheme
targeted vulnerable people,
including those without legal
immigration status
On October 10,
counsel for Gustavo Rodriguez
asked that he get time served
on October 22.
On October 17 the
US Attorney's Office wrote in
asking for 160 months on
Rodriguez - and on Brend.
On October 22
Inner City Press went to
Rodriguez' sentencing. His new
lawyer argued for a Fatico
hearing, including a Mr. Cruz
who had come to testify he
designed websites just like
Rodriguez. Judge Rochan got
the day's CJA counsel to come
up and advise Cruz; Rodriguez
took the stand at 4 pm and
began speaking about the
farming region in Argentina he
comes from.
The sentencing
only occurred on October 31,
after days of Fatico
hearing(s). Thread:
. Judge: I
find intentional false
statements, so enhancement
upward. And perhaps a
departure upward too - I'll
issue my sentence after lunch
AUSA: He
perjured himself for days. He
showed his Ponzi scheme on a
white board. He is
remorseless. Carmona had no
clue how to trade crypto, he
didn't even watch a YouTube
video
AUSA: I am going
to ask for more than in our
memo - 180 months, more than
the 121 months Carmona was
sentenced to. Defense lawyer:
That's more than violent
criminals get.
Defense: He's a
computer nerd that made a
mistake. He just wanted to
help Carmona. Inmate Stan
Jones wrote in saying he
should get home confinement.
His son was here for trial, if
you remember- Judge: I do [Me
too]
Defense: He
has been extorted in MDC
Bklyn. OK, he had too much
intellectual pride. What other
programmer has been sentenced
like this? He could teach how
MLM needs extra levels of
security to make sure it's not
a fraud Judge: Did he have a
hazardous tool in MDC?
Defense: A phone
in his cell. It wasn't his.
Gustavo Rodriguez: Initially I
wanted to talk with the
Government to help them... For
my son, he had never spent a
night without me. My other son
is finishing high school, he
saw college costs, very high.
Have mercy
Judge: I take
this seriously. I will rule
later
Judge is back:
Gustavo Rodriguez brought back
in by US Marshals Judge: He is
clearly a very smart man.
Based on my lengthy time with
him... I do not believe he is
a sociopath. He created the
back office and website that
allowed this. He did not
profit like others
Judge:
There are many crypto frauds,
they must be deterred. I
considered Tacuri [20 years,
for Forcount]. Carmona and
Ochoa pled guilty: he went to
trial, then said things that
are not true. I sentence you
to 96 months or 8 years
More on X for
Subscribers here
and Substack here
The case is US v.
Carmona, et al., 22-cr-551
(Rochon)
***
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