Two men behind one of the largest alleged cryptocurrency-based investment frauds now face federal charges. US authorities say they orchestrated a $650 million Ponzi-style scheme that targeted thousands of investors across the globe.
DOJ Charges Sims and Reynoso in Massive Investment Fraud
The US Department of Justice unsealed charges on Tuesday against Michael Shannon Sims, 48, of Georgia and Florida, and Juan Carlos Reynoso, 57, of New Jersey and Florida. Prosecutors filed the indictment in the District of Puerto Rico, accusing both men of conspiring to commit wire fraud and money laundering.
According to investigators, Sims and Reynoso ran and promoted OmegaPro, a crypto-based multilevel marketing investment platform. They allegedly misled investors with promises of high returns while using high-profile marketing and misleading financial claims to conceal the scheme’s fraudulent core.
Sims launched OmegaPro in January 2019. Reynoso joined several months later and helped expand its reach across Latin America, Puerto Rico, and the US.
The business claimed to offer up to 300% returns within 16 months through foreign currency trading. Investors had to buy digital “packages” using cryptocurrency. The platform grew rapidly through a multilevel referral system that rewarded users for bringing in others.
Sims and Reynoso marketed the company as fully licensed or beyond regulatory oversight—claims prosecutors now say were false.
How OmegaPro Fooled Victims
Sims and Reynoso relied on spectacle and image to dupe investors
They projected the OmegaPro logo onto the Burj Khalifa in Dubai, one of the tallest buildings in the world.
They showcased luxury cars, villas, and vacations on social media to build a narrative of success.
They held major promotional events, presenting OmegaPro as a legitimate global brand.
These moves convinced thousands to invest in what appeared to be a flourishing venture.
Court documents show that the pair funneled investor funds into crypto wallets controlled by OmegaPro insiders. From there, they moved the money across different accounts to hide its origin and evade detection.
Authorities believe both Sims and Reynoso took millions of dollars in personal profits. Meanwhile, the vast majority of investors received nothing in return.
In 2023, OmegaPro claimed to suffer a security breach. The founders then directed users to transfer their assets to a new platform called Broker Group, promising continued protection of their funds. However, investors never regained access to their money from either platform.
Investigation and Potential Penalties
The FBI, IRS Criminal Investigation, and Homeland Security Investigations jointly led the case with support from international agencies. Investigators are working to trace the stolen funds and identify additional victims.
As part of the inquiry, the FBI’s San Juan Field Office calls on individuals who lost money through OmegaPro between 2018 and 2023 to come forward. Those with relevant information can help strengthen the case and support recovery efforts.
Sims and Reynoso face up to 40 years in prison if convicted.
