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Colombian National Arrested and Charged with Operating $66 Million Ponzi Scheme Disguised as Payday Loan Company
MIAMI, Florida – Efrain Betancourt, Jr., 36, a Colombian citizen, was arrested on November 14, 2024 upon entering the United States and charged in South Florida federal court with leading a $66 million Ponzi scheme disguised as a payday loan company, Sky Group USA, LLC (Sky Group).
Betancourt, Jr. was charged by indictment with conspiracy to commit mail and wire fraud, and wire fraud on September 12, 2024. The indictment was unsealed in federal court on November 18, 2024.
According to allegations in the investment fraud indictment, Betancourt, Jr. offered promissory notes to Sky Group investors with yearly returns ranging from 24 to 120 percent. Betancourt, Jr. and others told promissory note investors their funds would be used to disburse payday loans to Sky Group clients. Interest from payday loan clients would then purportedly be used to repay promissory note investors. However, millions of dollars from promissory note investors were used to pay previous promissory note investors as part of the Ponzi scheme.
Betancourt, Jr. also used over $7.5 million of investor funds for personal use, including a luxury chateau wedding in France, expensive jewelry, a Miami condominium, and family vacations. Over 600 investors invested in Sky Group, many of whom were Venezuelan.
If convicted of all charges in the indictment, Betancourt, Jr. faces a maximum total penalty of 140 years’ imprisonment. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.
The U.S. Securities and Exchange Commission (SEC) had a parallel proceeding against Betancourt, Jr. related to the same investment fraud scheme alleged in the indictment. The SEC’s proceeding was resolved in July 2022.
The FBI, OFR, and the FBI’s South Florida Fraud Task Force investigated this matter. SEC’s Miami Regional Office provided assistance. Assistant U.S. Attorney Roger Cruz is prosecuting the case.
An indictment is merely an accusation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Key Facts
- State: Florida
- Category: Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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