OmegaPro Founder michael shannon sims Indicted in $650 Million Cryptocurrency and Forex Fraud

Federal prosecutors have brought charges against michael shannon sims and juan carlos reynoso for orchestrating one of the cryptocurrency industry’s most elaborate international scams. The U.S. Department of Justice revealed that the Georgia-based michael shannon sims, 48, and New Jersey resident reynoso, 57, operated the fraudulent investment scheme OmegaPro, which defrauded investors of approximately $650 million globally. The two men targeted victims across multiple continents by promoting what they called “foreign exchange investment packages” through a multi-level marketing structure that promised unrealistic returns.

The Deception Strategy: How the OmegaPro Scheme Operated

michael shannon sims founded OmegaPro and served as its primary promoter, while reynoso expanded the operation’s reach throughout Latin America and the United States. The scheme relied on a seductive marketing pitch: investors were promised 300% returns within just 16 months if they deposited cryptocurrency. To establish credibility and create an aura of legitimacy, the perpetrators engaged in an extensive image-building campaign. They displayed luxury vehicles, posted vacation photographs across social media, and even projected the OmegaPro logo onto Dubai’s iconic Burj Khalifa—a psychological tactic designed to convince victims of the operation’s legitimacy and financial success.

How the Fraud Unraveled

The scheme eventually collapsed when the operators froze all investor withdrawals. Rather than admitting the scam, they fabricated claims that the company had been “hacked,” using this pretext to prevent victims from accessing their funds. Simultaneously, they transferred the stolen assets to encrypted cryptocurrency wallets under their control. This coordinated strategy of fund-freezing and asset transfer allowed the perpetrators to maintain control over the vast majority of their ill-gotten gains while shifting blame externally.

Legal Consequences and Maximum Penalties

michael shannon sims and reynoso each face two separate conspiracy charges in federal court. If convicted on all counts, both men could face up to 20 years in prison per charge, with potential cumulative sentences exceeding two decades. The aggressive prosecution signals the U.S. Department of Justice’s commitment to cracking down on transnational cryptocurrency fraud schemes that exploit retail investors through sophisticated psychological manipulation and false promises of unrealistic returns.