Michael Shannon Sims Indicted in $650 Million OmegaPro Cryptocurrency Fraud Case

In July 2024, federal prosecutors delivered major charges against two individuals orchestrating one of the crypto industry’s most elaborate international scams. Michael Shannon Sims, a 48-year-old from Georgia, and Juan Carlos Reynoso, 57, from New Jersey, were indicted by the U.S. Department of Justice for operating the fraudulent scheme known as OmegaPro, which defrauded investors of approximately $650 million.

How the OmegaPro Scheme Deceived Investors

The two defendants marketed what they called “foreign exchange investment packages” through an aggressive multi-level marketing model, luring victims with extraordinary promises. Investors were told they could achieve a 300% return on their investment within just 16 months, with all transactions conducted in cryptocurrency to obscure the money trail.

To maintain credibility, Michael Shannon Sims and his co-conspirators employed sophisticated social engineering tactics. They created a veneer of legitimacy and wealth by flaunting luxury automobiles, posting lavish vacation photos across social media, and even projecting the OmegaPro logo onto the iconic Burj Khalifa skyscraper in Dubai. This illusion of success attracted waves of new victims eager to participate.

When investors attempted to withdraw their funds, the operators claimed the platform had been “hacked,” using this pretext to freeze all withdrawal requests. The seized assets were then systematically transferred to encrypted cryptocurrency wallets controlled by executive team members, ensuring the stolen funds remained beyond reach of authorities.

Legal Consequences and Conspiracy Charges

Sims served as the founder and lead promoter of OmegaPro, while Reynoso oversaw operations throughout Latin America and the United States, recruiting additional layers of participants. Both men now face two separate conspiracy charges, with each count carrying a maximum sentence of 20 years imprisonment. The case underscores the persistent threat of crypto-enabled fraud schemes and demonstrates law enforcement’s commitment to pursuing perpetrators across international borders.

The prosecution of Michael Shannon Sims and Reynoso represents a significant enforcement action in the ongoing battle against cryptocurrency fraud and multi-level marketing scams that target vulnerable investors worldwide.