The U.S. Federal
prosecutors have charged two men with running a massive international
investment fraud that bilked victims out of more than $650 million through a
fake cryptocurrency and foreign exchange trading platform called OmegaPro.
Michael
Shannon Sims, 48, and Juan Carlos Reynoso, 57, face wire fraud and money
laundering conspiracy charges in Puerto Rico federal court. Prosecutors say the
pair operated OmegaPro as a multi-level marketing scheme that promised
investors 300% returns over 16 months through supposed “elite forex traders.”
The Justice
Department unsealed the indictment Tuesday, revealing how the defendants
allegedly used lavish promotional events and social media displays of wealth to
lure thousands of victims worldwide. At one point, they projected the OmegaPro
logo onto Dubai’s Burj Khalifa, the world’s tallest building, to promote their
scheme.
Matthew R. Galeotti, head of the Justice Department’s Criminal Division.
“As
alleged, the defendants preyed upon vulnerable individuals in the U.S. and
abroad, defrauding them of over $650 million by making false promises of
substantial returns and that their money was safe,” said Matthew R.
Galeotti, head of the Justice Department’s Criminal Division.
A warning against OmegaPro and its MLM-style offer was issued several years ago by the French financial markets regulator, Autorité des Marchés Financiers (AMF).
How the Scheme Worked
Sims
founded OmegaPro in January 2019, with Reynoso joining a few months later to
oversee Latin American operations. Investors bought “investment
packages” using cryptocurrency, believing their money would be traded by
professional forex traders.
Instead,
prosecutors say the money went straight into virtual currency wallets
controlled by OmegaPro executives. The funds were then distributed to insiders
and promoters to hide where the money came from, while Sims and Reynoso
pocketed millions for themselves.
The
defendants allegedly misled victims about OmegaPro’s legitimacy. Sims vouched
for the platform’s trading performance and safety, while Reynoso falsely
claimed the company operated under proper licenses or wasn’t subject to any
country’s regulations.
When
OmegaPro announced a supposed network hack, Reynoso told victims in January
2023 their investments were secure and being transferred to another platform
called Broker Group. Victims couldn’t withdraw money from either platform,
resulting in total losses.
You may also like: Bank of America’s Former Energy Banking Chief Faces DOJ $8 Billion Trading Probe
International
Investigation
IRS-CI Chief Guy Ficco
The case
involved multiple federal agencies and international partners. The FBI, IRS
Criminal Investigation, and Homeland Security Investigations worked with law
enforcement in Colombia, Thailand, Germany, Turkey, the United Kingdom, the
Netherlands, and India.
“OmegaPro
promised financial freedom but delivered financial ruin – stealing over $650
million from everyday people and vanishing it into virtual currency,” said
IRS-CI Chief Guy Ficco. “These weren’t just scams; they were
precision-engineered betrayals.”
Both
defendants face up to 20 years in prison on each count if convicted. The FBI
has set up a victim reporting website for anyone who believes they were
defrauded by OmegaPro.
The Department of Justice is increasingly dealing with similar cases. One example is a February news report about two Estonian nationals who pleaded guilty to a $577 million investment Ponzi scheme, which carries a potential sentence of up to 20 years in prison.
The U.S. Federal
prosecutors have charged two men with running a massive international
investment fraud that bilked victims out of more than $650 million through a
fake cryptocurrency and foreign exchange trading platform called OmegaPro.
Michael
Shannon Sims, 48, and Juan Carlos Reynoso, 57, face wire fraud and money
laundering conspiracy charges in Puerto Rico federal court. Prosecutors say the
pair operated OmegaPro as a multi-level marketing scheme that promised
investors 300% returns over 16 months through supposed “elite forex traders.”
The Justice
Department unsealed the indictment Tuesday, revealing how the defendants
allegedly used lavish promotional events and social media displays of wealth to
lure thousands of victims worldwide. At one point, they projected the OmegaPro
logo onto Dubai’s Burj Khalifa, the world’s tallest building, to promote their
scheme.
Matthew R. Galeotti, head of the Justice Department’s Criminal Division.
“As
alleged, the defendants preyed upon vulnerable individuals in the U.S. and
abroad, defrauding them of over $650 million by making false promises of
substantial returns and that their money was safe,” said Matthew R.
Galeotti, head of the Justice Department’s Criminal Division.
A warning against OmegaPro and its MLM-style offer was issued several years ago by the French financial markets regulator, Autorité des Marchés Financiers (AMF).
How the Scheme Worked
Sims
founded OmegaPro in January 2019, with Reynoso joining a few months later to
oversee Latin American operations. Investors bought “investment
packages” using cryptocurrency, believing their money would be traded by
professional forex traders.
Instead,
prosecutors say the money went straight into virtual currency wallets
controlled by OmegaPro executives. The funds were then distributed to insiders
and promoters to hide where the money came from, while Sims and Reynoso
pocketed millions for themselves.
The
defendants allegedly misled victims about OmegaPro’s legitimacy. Sims vouched
for the platform’s trading performance and safety, while Reynoso falsely
claimed the company operated under proper licenses or wasn’t subject to any
country’s regulations.
When
OmegaPro announced a supposed network hack, Reynoso told victims in January
2023 their investments were secure and being transferred to another platform
called Broker Group. Victims couldn’t withdraw money from either platform,
resulting in total losses.
You may also like: Bank of America’s Former Energy Banking Chief Faces DOJ $8 Billion Trading Probe
International
Investigation
IRS-CI Chief Guy Ficco
The case
involved multiple federal agencies and international partners. The FBI, IRS
Criminal Investigation, and Homeland Security Investigations worked with law
enforcement in Colombia, Thailand, Germany, Turkey, the United Kingdom, the
Netherlands, and India.
“OmegaPro
promised financial freedom but delivered financial ruin – stealing over $650
million from everyday people and vanishing it into virtual currency,” said
IRS-CI Chief Guy Ficco. “These weren’t just scams; they were
precision-engineered betrayals.”
Both
defendants face up to 20 years in prison on each count if convicted. The FBI
has set up a victim reporting website for anyone who believes they were
defrauded by OmegaPro.
The Department of Justice is increasingly dealing with similar cases. One example is a February news report about two Estonian nationals who pleaded guilty to a $577 million investment Ponzi scheme, which carries a potential sentence of up to 20 years in prison.
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