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.

Two Men Charged in $650 Million OmegaPro Cryptocurrency Fraud Scheme

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 Marketing Marketing is defined as the business process of identifying, anticipating and satisfying customers' needs and wants.This is a crucial element of any operation or brokerage in the financial services space. Well-funded marketing campaigns are instrumental to the survival and longevity of these companies in an increasingly competitive industry.Within the forex space, marketers perform a wide range of functions to help procure, secure, or retain clients.In particular, newer forex brokers also have t Marketing is defined as the business process of identifying, anticipating and satisfying customers' needs and wants.This is a crucial element of any operation or brokerage in the financial services space. Well-funded marketing campaigns are instrumental to the survival and longevity of these companies in an increasingly competitive industry.Within the forex space, marketers perform a wide range of functions to help procure, secure, or retain clients.In particular, newer forex brokers also have t Read this Term 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.

“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 Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term 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.

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International Investigation

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.