CFTC-PR-9017-24 (12-11-24) (CFTC-PR-2412)

Los Angeles Federal Court Orders Five Individuals to Pay Over $5 Million for Digital Asset Fraud and Misappropriation Scheme

Excerpt:  December 11, 2024 – WASHINGTON, D.C. — The Commodity Futures Trading Commission today announced U.S. District Court, Central District of California, issued a consent order against Marco A. Ruiz Ochoa of Nashua, New Hampshire, and an order of default judgment on Oct. 21, against David Carmona formerly of Elmhurst, New York, Juan Arellano Parra formerly of Chino, California, Moses Valdez of Hesperia, California, and David Brend of Tampa, Florida.

The orders stem from the CFTC’s May 24, 2023, complaint charging the defendants, jointly doing business as Icomtech, with fraud in connection with their digital asset scheme and misappropriation. [See CFTC Press Release No. 8706-23].

The default judgment order finds Carmona, Arellano, Valdez and Brend liable for all violations of the Commodity Exchange Act and CFTC regulations alleged in the complaint including that they fraudulently solicited over $1 million from 190 individuals in the U.S. and other countries to supposedly trade bitcoin and other digital asset commodities for them, and for misappropriating customer funds. They are required to pay jointly and severally over $1 million in restitution to defrauded customers and to each pay a $1 million civil monetary penalty. The default judgment order also permanently enjoins them from engaging in conduct that violates the CEA, as charged, and permanently bans them from registering with the CFTC and from trading in any CFTC-regulated markets.

The consent order finds, and Ochoa admits, that Ochoa engaged in the fraud scheme with the other defendants. and requires him to pay jointly and severally with the other defendants over $1 million in restitution to defrauded customers. The consent order also imposes a permanent injunction and permanent trading, solicitation, and registration bans against Ochoa.

The court’s orders resolve the CFTC’s enforcement action against the defendants.

Source:  https://www.cftc.gov/PressRoom/PressReleases/9017-24

Categories:  Digital Assets – Misappropriation

CFTC-PR-9017-24 (12-11-24)