Crypto Fraud Scheme OmegaPro Defrauds Victims of $650 Million

Federal prosecutors have charged two men in connection with a massive cryptocurrency investment fraud scheme that defrauded victims out of more than $650 million. The indictment, unsealed in the District of Puerto Rico, accuses Michael Shannon Sims, 48, of Georgia and Florida, and Juan Carlos Reynoso, 57, of New Jersey and Florida, of operating and promoting OmegaPro. This global crypto-based multi-level marketing operation promised investors up to 300% returns over 16 months through foreign exchange trading.

“This case exposes the ruthless reality of modern financial crime,” said Guy Ficco, Chief of Criminal Investigations at the Internal Revenue Service. “OmegaPro promised financial freedom but delivered financial ruin.” Between 2019 and 2023, Sims, Reynoso, and other co-conspirators allegedly convinced thousands of victims worldwide to purchase crypto-based “investment packages,” falsely claiming the funds would be safely managed by elite forex traders.

Prosecutors say the pair flaunted their lavish lifestyles online and hosted glitzy events to build investor trust — including one in Dubai where the OmegaPro logo was projected onto the Burj Khalifa, the world’s tallest skyscraper. A video posted on the company’s LinkedIn page shows attendees dressed in formal attire celebrating under the spectacle. The case underscores ongoing federal efforts to crack down on crypto fraud and multi-level marketing abuses in the digital asset space.

Authorities say OmegaPro was a pyramid-style fraud disguised as a legitimate investment opportunity. After the firm claimed to have been hacked, the defendants told victims their funds had been moved to a new platform called Broker Group. However, users could never withdraw their money from OmegaPro or Broker Group. Sims and Reynoso now face charges of conspiracy to commit wire fraud and conspiracy to commit money laundering, each carrying a maximum sentence of 20 years in prison.

The multiagency investigation was led by the Justice Department, FBI, IRS-Criminal Investigation, and Homeland Security Investigations, with assistance from international law enforcement partners. The case highlights the growing sophistication of financial crimes in the digital asset space and the need for robust regulatory measures to protect investors from such schemes. The indictment serves as a stark reminder of the risks associated with unregulated investment opportunities and the importance of due diligence in the cryptocurrency market.