Federal prosecutors have charged two men in the United States for running a large-scale global investment scam involving cryptocurrency and foreign exchange through the OmegaPro platform. The Department of Justice (DOJ) announced on Tuesday that this scheme defrauded thousands of investors of over $650 million between 2019 and 2023.
Michael Shannon Sims, 48, and Juan Carlos Reynoso, 57, now face wire fraud and money laundering conspiracy charges in the District of Puerto Rico. Both men allegedly employed deceptive marketing and multi-level marketing tactics to lure participants into purchasing “investment packages” involving cryptocurrency.
Authorities say Sims and Reynoso created the illusion of a profitable forex trading operation by hosting extravagant promotional events and showcasing personal wealth online. DOJ stated that OmegaPro promised investors returns of up to 300% within 16 months.
According to court documents, investors were told that elite forex traders would manage their funds. However, prosecutors allege that OmegaPro executives and high-ranking promoters transferred investor funds to wallets under their control, profiting millions while concealing the money trail. Sims reportedly acted as the platform’s founder and strategic consultant, while Reynoso ran operations in Latin America and U.S. regions, including Puerto Rico.
Assistant Director Joe Perez of the FBI Criminal Investigative Division stated, “Through coordination with our partners, these individuals will have to defend their actions in a court of law.” The investigation included agencies such as the FBI, IRS Criminal Investigation, and Homeland Security Investigations, with support from international enforcement units across Europe, Asia, and South America.
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The OmegaPro platform began to unravel in late 2022 when users reported being locked out of accounts, and withdrawals were disabled. The company initially blamed technical issues and then claimed a network hack.
Regulators in France, Belgium, Spain, and Peru issued warnings against OmegaPro before its collapse. The scam mirrored past crypto frauds, such as OneCoin, raising questions about the prospects for fund recovery. “Based on previous scam cases, the chances of recovering assets are very rare,” said Karan Pujara of ScamBuzzer, who tracks crypto fraud patterns.
The Justice Department confirmed that both defendants will face a maximum of 40 years in prison if convicted. The case marks one of the largest cryptocurrency-related fraud indictments since the crackdown on token wash trading by Gotbit last month.