- More than $650 million was allegedly taken from investors between 2019 and 2023.
- The defendants are accused of misleading investors with false promises of returns and regulatory legitimacy.
- Prosecutors claim victims could not recover funds after OmegaPro’s collapse and transition to Broker Group.
- The FBI, IRS, and Homeland Security are investigating, with defendants facing up to 40 years in prison if convicted.
Two men, Michael Shannon Sims and Juan Carlos Reynoso, have been indicted in Puerto Rico for their roles in what U.S. officials describe as a massive investment scheme. According to the U.S. Department of Justice, the pair allegedly operated and promoted OmegaPro, a global platform that defrauded investors of over $650 million.
The indictment states that Sims founded and began promoting OmegaPro in early 2019 and that Reynoso joined the project within months. Prosecutors say OmegaPro offered investors up to 300% returns in just 16 months, using a multi-level model focused on foreign exchange (Forex) trading. Participants were told to buy investment “packages” with virtual currency, such as cryptocurrency.
Authorities allege that Sims and Reynoso attracted investors by holding large promotional events, projecting the company’s logo onto high-profile landmarks like Dubai‘s Burj Khalifa, and frequently posting on social media to highlight their luxury lifestyles. “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.
Court documents accuse the two of falsely claiming OmegaPro was licensed, and beyond regulatory scrutiny, and using their influence to convince others of its legitimacy. The funds collected were reportedly moved through cryptocurrency wallets controlled by insiders and then dispersed to hide their source. Both men are said to have gained millions of dollars personally.
In early 2023, OmegaPro told investors it had been hacked. Victims were reassured that their funds were secure and would be transferred to a new platform called Broker Group. However, according to officials, none of the affected investors were able to recover their money.
Agents from the FBI, IRS Criminal Investigation, and Homeland Security Investigations are working on the case with international partners. If convicted of conspiracy to commit wire fraud and conspiracy to commit money laundering, Sims and Reynoso each face up to 40 years in prison.
The FBI’s San Juan Field Office is looking to identify additional victims of the OmegaPro scheme from 2018 to 2023. Anyone who lost money or has relevant information is encouraged to fill out a short online form. The FBI also asks those who know possible victims to share the form so they can come forward.
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