Promoters of Defunct Forex Ponzi Scheme, Omegapro Face Charges for $650m Scam

Two promoters of the defunct forex Ponzi scheme, Omegapro, now face serious charges for a $650m scam. Michael Shannon Sims, 48, and Juan Carlos Reynoso, 57, are accused of running a global cryptocurrency investment fraud that tricked thousands of people in over 160 countries, including Nigeria, from 2019 to 2023. The promoters of Omegapro face charges for conspiracy to commit money laundering and wire fraud, each carrying a possible 20-year prison sentence.

Omegapro promised investors huge returns, up to 300% over 16 months, by claiming their money would be traded by expert forex traders. The company used a multi-level marketing structure, encouraging people to buy “investment packages” with cryptocurrency. But instead of real trading, the promoters of Omegapro face charges for scam activities that involved moving money into virtual wallets controlled by the company’s leaders, then paying insiders to hide the fraud.

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To make the scheme look real, Sims and Reynoso flaunted wealth on social media and hosted flashy events. They even projected the Omegapro logo onto Dubai’s tallest building, the Burj Khalifa, to impress potential investors. They also used endorsements from famous international figures and celebrities, including football stars like Ronaldinho and JJ Okocha, to build trust among victims, especially in Nigeria.

In Nigeria, Omegapro was introduced as a way to empower people and reduce poverty. Thousands of Nigerians invested billions of naira, expecting profits from forex trading. The company’s Nigerian agents, including well-known multi-level marketing leaders, helped promote the scheme with personal testimonials and claims of huge earnings. A petition by concerned Nigerian citizens described how these agents earned large sums weekly and annual commissions in millions, while many investors lost their money.

The scam collapsed after the company claimed it was hacked. The promoters told victims their funds were moved to a new platform called Broker Group. However, users could not withdraw their investments from either platform, confirming the fraud. After about three years, the Dubai-based owners and their agents disappeared with investors’ funds, leaving thousands of victims worldwide devastated.

The U.S. Department of Justice, along with the FBI, IRS Criminal Investigation, and Homeland Security Investigations, led the investigation that exposed this scheme. The case highlights how modern financial crimes use social media, celebrity endorsements, and impressive events to lure victims into losing their money.

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Omegapro joins a long list of Ponzi schemes that have targeted Nigerians and others globally, including CBEX, MMM, and GetHelp. The promoters of defunct forex Ponzi scheme Omegapro now face charges that could send them to prison for 20 years each, as authorities work to bring justice to those defrauded in this massive $650 million scam.

The promoters of Omegapro face charges for a $650m scam that used false promises of high returns through forex trading. The scheme operated globally, including Nigeria, where many lost their investments. The accused now face serious legal consequences for their roles in this elaborate Ponzi scheme that destroyed the financial hopes of thousands.

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