US Government Charges Two Men in $650 Million Crypto Pyramid Scheme
The U.S. government is prosecuting Michael Shannon Sims, 48, and Juan Carlos Reynoso, 57, for allegedly leading OmegaPro, a cryptocurrency pyramid scheme that defrauded victims of $650 million. Sims is identified as the founder, while Reynoso oversaw operations in Latin America.
Last year, Turkish police arrested Andreas Szakacs, also known as Emre Avci, who presented himself as OmegaPro’s CEO.
Celebrities Used to Promote OmegaPro
OmegaPro used celebrities to attract new investors. The leaders promoted soccer games featuring famous figures to build trust.
Ronaldinho Gaúcho, Kaká, and Falcão are among the Brazilian celebrities involved. Other international stars like Wesley Sneijder, John Terry, Iker Casillas, and Luís Figo also promoted the scheme. Even actor Steven Seagal was involved. The amounts they received are unknown.
According to the indictment, Sims and Reynoso organized lavish promotional events worldwide, including projecting the OmegaPro logo onto the Burj Khalifa in Dubai.
“The goal of these events was to convince current and potential investors that OmegaPro was a legitimate company offering a path to wealth and a luxurious lifestyle,” stated the U.S. government.
The investigation reveals that Michael Sims founded OmegaPro in January 2019, with Juan Carlos Reynoso joining in April of the same year.
Victims were promised high returns, up to 300% in 16 months, generated by “elite forex traders.” Investments were made in cryptocurrencies.
The pair flaunted a luxurious lifestyle on social media, including expensive vacations, cars, and designer clothes, funded by victims’ money.
OmegaPro’s Collapse
The pyramid scheme collapsed in January 2023, four years after its inception. The perpetrators claimed the funds were being moved to another platform called Broker Group.
Victims were unable to withdraw their deposits or promised profits.
“The more than $650 million raised from victims was initially sent to cryptocurrency wallets controlled by OmegaPro executives, then transferred to insiders and high-ranking promoters to disperse the funds and conceal their origin,” the U.S. government stated. “As alleged, Sims and Reynoso profited millions from this scheme.”
If convicted, the pair could face up to 40 years in prison.
Victims can contact the FBI via their website or email (OmegaProVictims@fbi.gov). Information on confiscated assets for potential reimbursements is unavailable.
While the U.S. estimates the fraud at $650 million, other sources suggest it could reach $4 billion.
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