OmegaPro Founder and Co-Conspirator Charged by U.S. DOJ in $650M Ponzi Scheme
The U.S. Department of Justice (DOJ) has indicted two key figures in the OmegaPro cryptocurrency investment scheme, alleging a massive fraud that bilked investors out of over $650 million. Michael Shannon Sims, a founder and promoter of OmegaPro, and Juan Carlos Reynoso, who oversaw operations in Latin America and parts of the U.S., face charges of conspiracy to commit wire fraud and money laundering. These charges stem from a sprawling international investment scheme that ultimately collapsed in 2022.
The indictment details how Sims, Reynoso, and their associates lured investors with promises of exorbitant returns—a staggering 300% return over just 16 months—through purported foreign exchange trading. This alluring proposition, coupled with assurances of the safety of their investments, proved irresistible to many. The alleged fraud targeted vulnerable individuals both domestically and internationally, exploiting their trust for significant financial gain. Investors were directed to purchase investment packages exclusively using cryptocurrency, further obscuring the scheme’s activities.
The DOJ’s statement emphasizes the predatory nature of the operation, highlighting the defendants’ exploitation of unsuspecting individuals. Matthew R. Galeotti, head of the justice department’s criminal division, underscored the gravity of the alleged offenses, stating that 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.”
This indictment follows the 2024 arrest of Andreas Szakacs, OmegaPro’s co-founder, in Turkey. Szakacs’s apprehension further underscores the international scope of the investigation and the determination of law enforcement to bring those responsible to justice. OmegaPro, established in early 2019 by Sims and others, operated under a deceptive façade, masking its fraudulent activities behind promises of lucrative returns. The ensuing investigation exposes the intricate web of deceit employed by the scheme’s architects, highlighting the inherent risks associated with unregulated investment opportunities, particularly those involving cryptocurrencies. The case serves as a cautionary tale, underscoring the importance of due diligence and investor awareness in navigating the complex landscape of the cryptocurrency market.
