Ponzi Scheme Organizer Receives 71-Month Sentence Amid Ongoing Federal Enforcement

Sentencing of Magdaleno Mendoza: On December 18, 2025, Magdaleno Mendoza was sentenced to 71 months in prison for his role in the IcomTech Ponzi scheme, which involved nearly $790,000 in restitution and the forfeiture of about $1.5 million in illicit gains.

Targeting Vulnerable Communities: Mendoza was a key promoter of IcomTech, which targeted Spanish-speaking and working-class investors, misleading them with promises of high returns while using new investors' funds to pay earlier ones.

Continued Fraudulent Activities: Despite the collapse of IcomTech in late 2019, Mendoza continued to promote similar fraudulent crypto schemes after pleading guilty to wire fraud conspiracy in July 2025.

Wider Implications of the Case: Mendoza's sentencing is part of a broader federal crackdown on crypto fraud, highlighting how scammers exploit trust in close-knit communities, with previous convictions of IcomTech's founder and CEO underscoring the serious consequences of such schemes.