The U.S. Department of Justice (DOJ) has announced charges against two men, Michael Shannon Sims and Juan Carlos Reynoso, for their alleged roles in orchestrating and promoting OmegaPro, a massive international investment scheme that defrauded victims of over $650 million. The indictment was unsealed in the District of Puerto Rico.
Sims, 48, of Georgia and Florida, is identified as a founder, strategic consultant, and promoter of OmegaPro. Reynoso, 57, of New Jersey and Florida, is accused of leading OmegaPro's operations in Latin America and parts of the United States, including Puerto Rico.
According to court documents, OmegaPro was established around January 2019, with Reynoso joining in April of the same year. The company operated as a multi-level marketing (MLM) scheme, enticing investors to purchase "investment packages" with the false promise of generating 300% returns within 16 months through foreign exchange (forex) trading by so-called elite traders. Investors were instructed to purchase these packages using virtual currency.
Prosecutors allege that Sims and Reynoso deliberately misled investors about the safety of their investments and the expertise of the traders. Sims allegedly vouched for OmegaPro's trading performance and the skills of its hired traders. Reynoso is accused of falsely representing that OmegaPro operated under a legitimate license or, at times, was not subject to any country's legal rules.
The DOJ claims that the funds raised from victims were initially directed to virtual currency wallet addresses controlled by OmegaPro executives. These funds were then allegedly transferred to OmegaPro insiders and high-ranking promoters to further distribute the money and conceal its origins. It is alleged that both Sims and Reynoso profited handsomely from the scheme. To cultivate investor trust, the pair allegedly flaunted lavish lifestyles online and hosted extravagant events, including projecting the OmegaPro logo onto the Burj Khalifa in Dubai.
When investors attempted to withdraw their funds, the defendants allegedly froze the accounts under the pretense of a "hacker attack". Victims were then informed that their funds had been moved to a new platform called Broker Group; however, users were unable to withdraw their money from either OmegaPro or Broker Group.
Both Sims and Reynoso face charges of conspiracy to commit wire fraud and conspiracy to commit money laundering. If convicted, each could face a maximum penalty of 20 years in prison for each count.
U.S. Attorney W. Stephen Muldrow for the District of Puerto Rico stated that the defendants allegedly operated a global fraud scheme through OmegaPro, deceiving investors with false promises of extraordinary returns, only to misappropriate hundreds of millions of victim funds. He affirmed the commitment to dismantling international financial schemes targeting U.S. victims and recovering illicit proceeds through criminal prosecution and asset forfeiture.
Assistant Director Joe Perez of the FBI Criminal Investigative Division asserted that the FBI will not stand by while the American public is defrauded and that the defendants will have to defend their actions in a court of law. Chief Guy Ficco of the IRS Criminal Investigation (IRS-CI) described OmegaPro as a betrayal that promised financial freedom but delivered financial ruin, stealing over $650 million from everyday people and vanishing it into virtual currency.
This case underscores the ongoing efforts to combat crypto fraud and multi-level marketing abuses in the digital asset space. Authorities have described OmegaPro as a pyramid scheme disguised as a legitimate investment opportunity. The DOJ's action against OmegaPro serves as a reminder of the importance of caution and due diligence when investing in high-risk markets like forex and cryptocurrency.
