Two men charged in $650 million OmegaPro crypto fraud case
U.S. prosecutors have charged two men, accusing them of orchestrating a global scheme that defrauded investors of a total of $650 million through the transfer of funds using digital assets.
According to the U.S. Department of Justice, 48-year-old Michael Shannon Sims (from Georgia and Florida) and 57-year-old Juan Carlos Reynoso (from New Jersey and Florida) were indicted on Tuesday for conspiracy to commit wire fraud and conspiracy to commit money laundering.
Sims is the founder and promoter of OmegaPro, while Reynoso was responsible for the company's operations in Latin America and the United States.
If convicted, both face up to 20 years in prison for each charge.
Prosecutors stated that OmegaPro operated on a multi-level marketing (MLM) model, promising investors returns of up to 300% within 16 months through foreign exchange trading. Clients were required to purchase 'investment packages' using cryptocurrency.
The two defendants and their associates are accused of flaunting their wealth by showcasing luxury cars, lavish vacations, and designer clothing, and hosting extravagant events worldwide, including projecting the OmegaPro logo onto the Burj Khalifa in Dubai.
OmegaPro later claimed to have been hacked, but Reynoso and other executives reassured investors that their funds were safe and would be transferred to a new platform. However, investors were unable to withdraw their funds, which were ultimately transferred to cryptocurrency wallets controlled by company executives.
U.S. authorities emphasized that they will continue to combat international financial fraud and recover illicit proceeds.
Source: https://www.justice.gov/opa/pr/omegapro-founder-and-promoter-charged-running-global-650m-foreign-exchange-and-crypto