US DOJ Sues OmegaPro for $650 Million Forex and Cryptocurrency Scam

The US Department of Justice has sued OmegaPro, a $650 million forex and cryptocurrency scam organization, and indicted its founder Michael Shannon Sims and operations leader Juan Carlos Reynoso. The indictment alleges that the defendants marketed investment packages with a 300% return, froze investor funds, and transferred them to a controlled cryptocurrency wallet. Each defendant faces two conspiracy charges, with a maximum sentence of 20 years in prison if convicted.

The US Department of Justice has taken significant action against OmegaPro, a global cryptocurrency and forex investment scheme that allegedly defrauded investors of over $650 million. The department has indicted Michael Shannon Sims, the founder of OmegaPro, and Juan Carlos Reynoso, the operations leader, on charges of conspiracy to commit wire fraud and conspiracy to commit money laundering [1].

The indictment, unsealed in the District of Puerto Rico, alleges that OmegaPro operated as a multi-level marketing scam. The company promised investors a 300% return over 16 months through foreign exchange trading. However, the scheme was a pyramid-style fraud. According to the Department of Justice, Sims and Reynoso, along with their co-conspirators, lured thousands of victims worldwide to purchase "investment packages" using cryptocurrency [1].

The defendants are accused of flaunting their wealth through social media and extravagant events, including projecting the OmegaPro logo onto the Burj Khalifa in Dubai, to convince investors of the operation's legitimacy. When the company claimed it had suffered a hack, the defendants allegedly transferred investor funds to a new platform called Broker Group, from which users were never able to withdraw their money [1].

The two men face a maximum sentence of 20 years in prison if convicted. The Justice Department, FBI, IRS-Criminal Investigation, and Homeland Security Investigations led the multiagency investigation, with help from international partners [1].

The case highlights the importance of due diligence and caution when investing in cryptocurrency and forex schemes. Investors should be wary of promises of high returns and seek professional advice before making investment decisions.

References:
[1] https://www.nbclosangeles.com/news/business/money-report/two-charged-in-650-million-global-crypto-scam-that-promised-300-returns/3740898/?os=roku&ref=app