by Matthew Russell Lee, Patreon Book Substack
SDNY COURTHOUSE, Oct 22 – 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 is now set for Monday October 28.
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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