With the promise of astronomical returns, a massive crypto scam swindled hard-working Americans out of $650 million.
The Department of Justice (DOJ) has unsealed an indictment in Puerto Rico against 48-year-old Michael Shannon Sims and 57-year-old Juan Carlos Reynoso.
Two men have been charged with running OmegaPro, a scheme that promised 300% returns.
The pair orchestrated a multi-level marketing scheme that targeted crypto investors between 2019 and 2023.
They lured victims with promises of extraordinary returns through foreign exchange trading.
The accused men used elaborate marketing tactics, including projecting the OmegaPro logo on Dubai’s Burj Khalifa and flaunting luxury items on social media to create an illusion of legitimacy and success.
The Justice Department said the promotional events were designed “to convince existing and prospective investors that OmegaPro was a legitimate enterprise that offered a path to wealth and a luxurious lifestyle.”
“This case exposes the ruthless reality of modern financial crime,” declared the Internal Revenue Service’s Chief of Criminal Investigations Guy Ficco.
He added that “OmegaPro promised financial freedom but delivered financial ruin.”
When investors attempted to withdraw their funds, they discovered they could not access their money.
Prosecutors argue that the defendants laundered the stolen funds through various cryptocurrency wallets.
In January 2023, OmegaPro claimed their network had been hacked but assured clients their investments remained secure.
The move was a typical tactic used in such schemes to delay the discovery of the fraud.
According to the DOJ’s Criminal Division head Matthew Galeotti, the defendants “preyed upon vulnerable individuals in the US and abroad, defrauding them of over $650 million by making false promises of substantial returns and that their money was safe.”
Prosecutors stated that OmegaPro claimed to have “elite traders” managing investments, but in reality, it was operating as a pyramid-style fraud.
After claiming a network hack, they transferred the remaining funds to a new platform called Broker Group, where users were still unable to withdraw their money.
In light of the scam, the DOJ said it is “committed to dismantling international financial schemes that target U.S. victims.”
The defendants now face charges of wire fraud conspiracy and money laundering conspiracy, with each carrying a maximum penalty of 20 years in prison.
Meanwhile, OmegaPro co-founder Andreas Szakacs was arrested in Turkey just last month for defrauding investors out of $4 billion, a charge he denies.
The investigation involved multiple agencies, including the FBI, the IRS-Criminal Investigation division, and Homeland Security Investigations.
