Two men are facing federal charges in the United States for allegedly orchestrating one of the largest crypto-based investment scams in recent years. The Department of Justice announced on Tuesday that Michael Shannon Sims and Juan Carlos Reynoso have been indicted for their roles in the OmegaPro scheme, which prosecutors say defrauded investors of more than $650 million between 2019 and 2023.
According to court documents filed in Puerto Rico, Sims was a founder and key promoter of OmegaPro, while Reynoso ran its operations across Latin America. Prosecutors claim the duo lured victims with false guarantees of financial security and extraordinary profits.
“These defendants allegedly preyed on vulnerable individuals both in the U.S. and internationally,” said Matthew Galeotti of the DOJ’s Criminal Division, adding that they sold false hopes of financial growth through fabricated promises and fake trading operations.
300% Return Claims and Flashy Promos Fueled Investor Frenzy
The DOJ alleges that OmegaPro operated as a multilevel marketing scheme, selling so-called “investment packages” through crypto payments. These packages were pitched as opportunities to earn up to 300% returns in just 16 months, supposedly generated by a team of elite forex traders.
Beyond the unrealistic returns, prosecutors say the scheme was propped up by extravagant marketing tactics. Sims and Reynoso are accused of hosting flashy global events, using expensive visuals and celebrity-style imagery to build credibility. One stunt included projecting the OmegaPro logo on the Burj Khalifa in Dubai — a move meant to showcase legitimacy.
On social media, the pair allegedly flaunted luxury cars, exotic travel, and high-end fashion to attract new recruits and retain existing investors. Investigators believe this illusion of wealth and success was part of a broader strategy to keep the cash flowing while the scheme grew globally.
Collapse, Cover-Up, and New Platform Deception
OmegaPro’s downfall began in January 2023 when the firm claimed it had suffered a network hack. Clients were told their funds remained safe and were being migrated to a new platform called Broker Group. But according to U.S. prosecutors, that move was simply another layer of deception.
Instead of securing client funds, the DOJ alleges the money was funneled through digital wallets and misappropriated by insiders. Investors reported they were unable to access their funds on either platform, effectively leaving them empty-handed.
Sims and Reynoso now face charges of wire fraud conspiracy and money laundering conspiracy, with each offense carrying a maximum prison sentence of 20 years. Meanwhile, OmegaPro co-founder Andreas Szakacs was arrested last year in Turkey on related allegations tied to a separate $4 billion fraud claim — charges he denies.
The case is part of a growing push by U.S. regulators and law enforcement to clamp down on international crypto fraud rings that use sophisticated marketing and digital finance tools to scam investors out of billions.
Quick Facts
- DOJ charged two men for defrauding investors in the OmegaPro scheme.
- OmegaPro promised 300% returns via crypto-funded investment packages.
- Lavish promotional events and luxury imagery were used to attract investors.
- Clients lost access to funds after a supposed “hack” and platform transfer.
- Both men face up to 40 years in prison if convicted.
