U.S. Attorney Announces Fraud And Money Laundering Charges Against The Founders And Promoters Of Two Cryptocurrency Ponzi Schemes

 

Damian Williams, the United States Attorney for the Southern District of New York, and Ivan J. Arvelo, the Special Agent in Charge of the New York Field Office of the Department of Homeland Security (“HSI”), announced charges in two separate Indictments against the founders and promoters of two cryptocurrency Ponzi schemes known as IcomTech and Forcount (and later known as Weltsys).  United States v. David Carmona, et al., 22 Cr. 551 (JLR), charges DAVID CARMONA, MARCO RUIZ OCHOA, MOSES VALDEZ, JUAN ARELLANO, DAVID BREND, and GUSTAVO RODRIGUEZ with conspiracy to commit wire fraud based on their involvement with IcomTech from in or about mid-2018 until in or about the end of 2019.  United States v. Francisley da Silva, et al., S1 22 Cr. 622 (AT), charges FRANCISLEY DA SILVA, JUAN TACURI, and ANTONIA PEREZ HERNANDEZ with conspiracy to commit wire fraud and wire fraud based on their involvement with Forcount from in or about mid-2017 until at least in or about the end of 2021.  SILVA and TACURI are also charged with conspiracy to commit money laundering, and HERNANDEZ is also charged with making false statements.

U.S. Attorney Damian Williams said: “With these two indictments, this Office is sending a message to all cryptocurrency scammers: We are coming for you.  Stealing is stealing, even when dressed up in the jargon of cryptocurrency.  Thanks to the efforts of federal, state, and international law enforcement, IcomTech and Forcount’s founders and promoters are being held to account.”

HSI Special Agent in Charge Ivan J. Arvelo said: “The excitement around cryptocurrency and the potential to make huge profits attracted would-be investors to the alleged schemes run by the individuals indicted today.  With high end clothes and cars, these individuals are alleged to have presented a life of luxury to potential investors, but instead of a lucrative investment opportunity, the victims were fleeced of their savings and left with nothing to show for it.   Homeland Security Investigations works tirelessly to uncover financial crimes and bring perpetrators to justice.”

As alleged in the Indictments:[1]

IcomTech and Forcount were both purported cryptocurrency mining and trading companies that promised to earn their respective victim-investors (“Victims”) profits in exchange for their purchase of purported cryptocurrency-related investment products.  The founders and promoters of each scheme falsely promised their respective Victims, among other things, that profits from the companies’ cryptocurrency trading and mining would result in guaranteed daily returns on Victims’ investments and the doubling of those investments within six months.  In reality, neither company was engaging in cryptocurrency trading or mining, and the founders and promoters of both schemes were using Victim funds to pay other Victims, to further promote the schemes, and to enrich themselves.

Both the IcomTech and Forcount defendants fraudulently induced their victims to invest in sham cryptocurrency activities using similar methods.  The founders and promoters of the two schemes traveled throughout the United States and internationally where they hosted lavish expos and small community presentations aimed at luring Victims to invest in the schemes, including in the Southern District of New York.  During larger-scale events, the schemes’ promoters would present the schemes’ investment products and compensation plan, encourage Victims to invest as a means of achieving financial freedom, and boast about the amount of money they were earning.  The schemes’ promoters often showed up at larger-scale events in expensive cars and wearing luxury clothing as a way of exhibiting their purportedly legitimate success from the schemes.  The atmosphere of these events was festive and designed to generate excitement about the schemes.

Victims invested in the IcomTech and Forcount schemes by purchasing investment products from promoters using cash, checks, wire transfers, and actual cryptocurrency. Following a Victim’s investment, they would be provided with access to an online portal where they could monitor their purported returns.  While Victims saw “profits” accumulate on the schemes’ respective online portals, most Victims were unable to withdraw any of these so-called profits and ultimately lost their entire investments.  By contrast, IcomTech and Forcount’s promoters siphoned off, in some cases, hundreds of thousands of dollars in Victim funds, which they withdrew as cash, spent on promotional expenses for the schemes, and used for personal expenditures such as luxury goods and real estate.

At least as early as August 2018 with respect to the IcomTech scheme, and in or about April 2018 with respect to the Forcount scheme, Victims who attempted to withdraw money from their online portal accounts had difficulty doing so and, when they complained to promoters, they were met with excuses, delays, and hidden fees, if they were able to make any withdrawals at all.  Despite these complaints, IcomTech and Forcount’s promoters, including the defendants, continued to promote their respective fraudulent schemes and accept Victims’ investments.  As complaints mounted in both schemes, IcomTech and Forcount both began offering proprietary crypto-tokens for sale as a means of injecting liquidity into the schemes.  Promoters of the schemes claimed that these tokens, known as “Icoms” in the IcomTech scheme and “Mindexcoin” in the Forcount scheme, would eventually be worth a significant amount of money when they were accepted by companies for payment for goods and services.  This was false.  In reality, they were essentially worthless and resulted in further financial loss to Victims.  By in or about the end of 2019 with respect to IcomTech, and in or about 2021 with respect to Forcount, the schemes had stopped making payments to Victims and their chief promoters, including the defendants, stopped promoting the schemes, and, in some instances, stopped responding to Victims’ complaints altogether.

In addition to promoting the Forcount scheme, SILVA and TACURI also sought to conceal their fraud by laundering Victim funds through shell companies and making large personal expenditures on things like real estate and bulk cellphone purchases.  On or about June 27, 2022, law enforcement officers with HSI stopped and interviewed HERNANDEZ as she was returning to the United States from Mexico.  During the interview, HERNANDEZ falsely denied, among other things, being a Forcount promoter, recruiting investors, and taking money from them.

On November 8, 2022, United States v. David Carmona, et al., 22 Cr. 551 (JLR), was unsealed.  As alleged in the Carmona indictment, CARMONA was the founder of IcomTech; OCHOA, VALDEZ, ARELLANO, and BREND were promoters of the scheme; and RODRIGUEZ was hired by CARMONA to build and maintain IcomTech’s website and online portal.  On November 8, 2022, CARMONA was arrested in Queens, New York, and presented before United States Magistrate Judge Sarah L. Cave of the Southern District of New York; OCHOA was arrested in the District of New Hampshire; VALDEZ, ARELLANO, and RODRIGUEZ were arrested in the Central District of California; and BREND was arrested in the Middle District of Florida.  The Carmona matter has been assigned to United States District Judge Jennifer L. Rochon.

On December 14, 2022, United States v. Francisley da Silva, et al., S1 Cr. 622 (AT), was unsealed.  As alleged in the Silva indictment, SILVA was the founder of Forcount and TACURI and HERNANDEZ were promoters of the scheme.  On December 14, 2022, TACURI was arrested in the Southern District of Florida.  SILVA, a Brazilian national, has been in custody in Brazil since on or about November 3, 2022.  HERNANDEZ remains at large.  The Silva matter has been assigned to United States District Judge Analisa Torres.

A chart containing the names of the defendants who were charged today and the charges and maximum penalties they face is attached.  The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants would be determined by a judge.

Mr. Williams praised the outstanding investigative work of HSI, particularly HSI New York El Dorado Task Force/Securities Investigations Group, HSI Brasilia, HSI Tampa, and HSI Orlando; the New York City Police Department; the New York City Sheriff’s Office; the Bureau of Insurance Fraud, Property, and Casualty in the Division of Investigative and Forensic Services of the Florida Department of Financial Services; and the Florida Office of Financial Regulation.  Mr. Williams also thanked the Securities and Exchange Commission, the Commodity Futures Trading Commission, and the Brazilian Federal Police for their assistance.  

The charges contained in the indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

The United States Attorney’s Office for the Southern District of New York is committed to protecting the rights of crime victims.  If you believe you are a victim of the IcomTech and/or Forcount schemes, our Victim/Witness Unit can make sure that you are notified of important stages of these cases to help you exercise your rights.  In addition, our Victim/Witness Unit is available to answer questions you might have about these cases and can refer you to available resources.

Wendy Olsen Clancy

Victim/Witness Coordinator

United States Attorney’s Office

One St. Andrew’s Plaza

New York, New York 10007

(866) 874-8900

Wendy.Olsen@usdoj.gov

 

United States v. David Carmona, et al., 22 Cr. 551 (JLR)
Defendant	Age	Charges	Maximum Penalties
DAVID CARMONA,  Queens, NY	39	Count 1: Conspiracy to commit wire fraud	20 years in prison
MARCO RUIZ OCHOA,  Nashua, NH	34	Count 1: Conspiracy to commit wire fraud	20 years in prison
MOSES VALDEZ,  Hesperia, CA	26	Count 1: Conspiracy to commit wire fraud	20 years in prison
JUAN ARELLANO,  Chino, CA	46	Count 1: Conspiracy to commit wire fraud	20 years in prison
DAVID BREND,  Tampa, FL	48	Count 1: Conspiracy to commit wire fraud	20 years in prison
GUSTAVO RODRIGUEZ,  North Hollywood, CA	46	Count 1: Conspiracy to commit wire fraud	20 years in prison
United States v. Francisley da Silva, et al., S1 22 Cr. 622 (AT)
FRANCISLEY DA SILVA, Curitiba, Brazil	37	Count 1: Conspiracy to commit wire fraud     Count 2: Wire fraud     Count 3: Conspiracy to commit money laundering	20 years in prison     20 years in prison     20 years in prison
JUAN TACURI,  Orlando, FL	44	Count 1: Conspiracy to commit wire fraud     Count 2: Wire fraud     Count 3: Conspiracy to commit money laundering	20 years in prison     20 years in prison     20 years in prison
ANTONIA PEREZ HERNANDEZ,  Tampa, FL	47	Count 1: Conspiracy to commit wire fraud     Count 2: Wire fraud     Count 4: False statements	20 years in prison     20 years in prison     Five years in prison

[1] As the introductory phrase signifies, the entirety of the text of the Indictments and the description of the Indictments set forth herein constitute only allegations, and every fact described should be treated as an allegation.

Wildlife Trafficker Sentenced To 57 Months For Large-Scale Trafficking Of Rhinoceros Horns And Elephant Ivory

 

 Damian Williams, the United States Attorney for the Southern District of New York, announced that AMARA CHERIF, a/k/a “Bamba Issiaka,” a citizen of Guinea, was sentenced to 57 months for conspiring to traffic in millions of dollars in rhinoceros horns and elephant ivory, both endangered wildlife species, which involved the illegal poaching of more than approximately 35 rhinoceros and more than 100 elephants.  The sentence was imposed by U.S. District Judge Gregory H. Woods.  CHERIF’s co-conspirators, MOAZU KROMAH, a/k/a “Ayoub,” a/k/a “Ayuba,” a/k/a “Kampala Man,” a citizen of Liberia, and MANSUR MOHAMED SURUR, a/k/a “Mansour,” a citizen of Kenya, were previously sentenced to prison terms of 63 months and 54 months, respectively, by Judge Woods.

U.S. Attorney Damian Williams said: “Amara Cherif, Moazu Kromah, and Mansur Mohamed Surur decided that their profit was more important than the protected wildlife and natural resources that they chose to traffic, and two endangered species suffered because of that repugnant decision.  These sentences show that this Office takes seriously our responsibility to use every tool at our disposal to do our part in reducing threats to the survival of endangered animals by bringing their poachers and traffickers to justice.”

According to the charging and other documents filed in the case, as well as statements made in court proceedings:

KROMAH, CHERIF, and SURUR were members of a transnational criminal enterprise (the “Enterprise”) based in Uganda and surrounding countries that was engaged in the large-scale trafficking and smuggling of rhinoceros horns and elephant ivory, both protected wildlife species.  Trade involving endangered or threatened species violates several U.S. laws, as well as international treaties implemented by certain U.S. laws.

From at least in or about December 2012 through at least in or about May 2019, KROMAH, CHERIF, and SURUR conspired to transport, distribute, sell, and smuggle at least approximately 190 kilograms of rhinoceros horns and at least approximately 10 tons of elephant ivory from or involving various countries in East Africa, including Uganda, the Democratic Republic of the Congo, Guinea, Kenya, Mozambique, Senegal, and Tanzania, to buyers located in the United States and countries in Southeast Asia.  Such weights of rhinoceros horn and elephant ivory are estimated to have involved the illegal poaching of more than approximately 35 rhinoceros and more than approximately 100 elephants.  In total, the estimated average retail value of the rhinoceros horn involved in the conspiracy was at least approximately $3.4 million, and the estimated average retail value of the elephant ivory involved in the conspiracy was at least approximately $4 million.

Typically, the defendants exported and agreed to export the rhinoceros horns and elephant ivory for delivery to foreign buyers, including a buyer represented to be in Manhattan, in packaging that concealed the rhinoceros horns and elephant ivory in, among other things, pieces of art such as African masks and statues.  The defendants received and deposited payments from foreign customers that were sent in the form of international wire transfers, some of which were sent through U.S. financial institutions, and paid in cash.

On or about March 16, 2018, law enforcement agents intercepted a package containing a black rhinoceros horn sold by the defendants that was intended for a buyer represented to be in Manhattan.  From in or about March 2018 through in or about May 2018, the defendants offered to sell additional rhinoceros horns of varying weights, including horns weighing up to approximately seven kilograms.  On or about July 17, 2018, law enforcement agents intercepted a package containing two rhinoceros horns weighing over five kilograms sold by the defendants that were intended for a buyer represented to be in Manhattan.

Separately, from at least in or about August 2018 through at least in or about May 2019, SURUR conspired with others to distribute and possess with intent to distribute a large quantity of heroin to a buyer represented to be located in New York.

KROMAH was arrested in Uganda on June 12, 2019, and expelled to the United States on June 13, 2019.  CHERIF was arrested in Senegal on June 7, 2019, and extradited to the United States on April 2, 2020.  SURUR was arrested in Kenya on July 29, 2020, and extradited to the United States on January 25, 2021.  The defendants have been detained since their arrest and arrival in this country.

KROMAH, 52, of Liberia; CHERIF, 57, of Guinea; and SURUR, 62, of Kenya, each pled guilty to one count of conspiracy to commit wildlife trafficking.  In addition, KROMAH and CHERIF both pled guilty to two counts of wildlife trafficking, and SURUR also pled guilty to one count of conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin.

Mr. Williams praised the outstanding investigative work of the U.S. Fish and Wildlife Service and the U.S. Drug Enforcement Administration, and he thanked law enforcement authorities and conservation partners in Uganda and Kenya, including the Uganda Wildlife Authority, the Uganda Office of the Director of Public Prosecution, the Uganda Police Force, the Kenya Directorate of Criminal Investigations, and the Kenyan Office of the Director of Public Prosecutions, for their assistance in this investigation.  Mr. Williams also thanked the U.S. Department of State and the U.S. Department of Justice’s Office of International Affairs for their assistance.