The United States has charged two men in connection with a cryptocurrency investment scheme known as OmegaPro, which allegedly defrauded investors of more than $650 million.
On Tuesday, the Department of Justice announced that a federal court in Puerto Rico had unsealed an indictment against Michael Shannon Sims—described as a founder, strategic consultant, and promoter of OmegaPro—and Juan Carlos Reynoso, who is accused of overseeing the company’s operations in Latin America.
Matthew Galeotti, head of the DOJ’s Criminal Division, stated that the two men “preyed on vulnerable individuals in the U.S. and abroad, deceiving them with false promises of high returns and assurances that their money was secure.”
The DOJ alleges that OmegaPro promised investors returns of up to 300%
According to the Justice Department, OmegaPro operated as a multilevel marketing scheme from 2019 to 2023, targeting cryptocurrency investors by selling so-called “investment packages.”
Sims and Reynoso allegedly claimed these packages would deliver 300% returns within 16 months, generated through foreign exchange trading by a team of “elite traders,” the DOJ said.
Participants were allegedly directed to buy these investment packages using cryptocurrency.
Lavish promotional events were reportedly used to entice potential investors
The two men allegedly employed deceptive marketing tactics, including hosting extravagant OmegaPro promotional events and training sessions around the world. One such stunt involved projecting the company’s logo onto the Burj Khalifa in Dubai—the tallest building in the world.
According to the Justice Department, they also showcased luxury vacations, high-end cars, and designer goods on social media to persuade both current and potential investors that OmegaPro was a legitimate opportunity promising wealth and a lavish lifestyle.
In January 2023, OmegaPro claimed it had experienced a network hack, assuring clients that their investments were safe and that the Dubai-based company was in the process of transferring funds to a new platform called Broker Group, according to the DOJ.
However, prosecutors allege that investors were ultimately unable to access their money on either platform, as the funds were funneled through cryptocurrency wallets and laundered to benefit insiders.
Accused OmegaPro Promoters Could Face Up to 40 Years in Prison
Sims and Reynoso have each been charged with conspiracy to commit wire fraud and conspiracy to commit money laundering, with both charges carrying a maximum sentence of 20 years in prison.
Meanwhile, OmegaPro co-founder Andreas Szakacs was arrested in Turkey in July 2024, accused of defrauding investors of $4 billion through the company—allegations he denies.
