Two men charged in $650 million OmegaPro cryptocurrency fraud scheme

Two men have been indicted for their alleged roles in operating and promoting OmegaPro, an international investment scheme that defrauded investors of more than $650 million, according to the U.S. Justice Department.

Michael Shannon Sims, 48, of Georgia and Florida, and Juan Carlos Reynoso, 57, of New Jersey and Florida, are charged in the District of Puerto Rico with conspiracy to commit wire fraud and conspiracy to commit money laundering. Both men allegedly played central roles in the scheme’s operation across Latin America and parts of the United States, including Puerto Rico.

Sims is accused of founding and promoting OmegaPro starting in January 2019, with Reynoso joining several months later.

According to court documents, the company was marketed as a multi-level investment platform offering up to 300% returns in 16 months through foreign exchange trading. Investors were encouraged to buy “packages” using virtual currency.

Prosecutors say the defendants misled investors by falsely vouching for OmegaPro’s performance, claiming the company was licensed or beyond the reach of regulatory oversight, and hosting high-profile promotional events to portray the company as a legitimate path to wealth.

These events included projecting the OmegaPro logo onto the Burj Khalifa in Dubai.

Sims and Reynoso also allegedly used social media to promote their lavish lifestyles as evidence of the scheme’s success. The indictment states that funds were funneled through crypto wallets controlled by OmegaPro insiders before being dispersed to hide their origins. Both men allegedly profited millions of dollars.

In early 2023, after OmegaPro claimed it had been hacked, victims were told their funds were safe and being moved to a new platform, Broker Group. According to the Justice Department, investors were ultimately unable to recover their money from either platform.

The case is being investigated by the FBI, IRS Criminal Investigation, and Homeland Security Investigations, with support from international partners across multiple continents. If convicted, Sims and Reynoso each face up to 40 years in prison.

“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.

The FBI’s San Juan Field Office is seeking to identify victims who may have been defrauded through OmegaPro between 2018 and 2023. Individuals who suffered financial losses or have information relevant to the case are encouraged to complete a short online form. The FBI also urges anyone who knows a possible victim to share the form so they can come forward directly.