Miami Man Arrested and Charged in $66 Million Ponzi Scheme

Efrain Enrique Betancourt, Jr. was arrested and charged with conspiracy to commit mail and wire fraud. Betancourt is the former Chief Executive Officer, managing member, and sole owner of Sky Group USA, LLC.

Betancourt is alleged to have hired more than 50 outside sales agents to solicit, offer, and sell Sky Group promissory notes to investors located in South Florida, throughout the United States, and abroad, in which they agreed to invest in funding small-dollar, short-term loans to consumer borrowers in exchange for monthly interest payments and the return of principal after one year. Sky Group allegedly raised approximately $66 million from over 600 investors through the offer and sale of these promissory notes, with promised yearly returns ranging from 24 to 120 percent. However, according to allegations in the indictment, new investor money was purportedly used to pay previous investors’ returns. Betancourt is also alleged to have used more than $7.5 million for personal use.

This investigation was developed jointly by the OFR and the Federal Bureau of Investigation (FBI) with assistance from the U.S. Securities and Exchange Commission (SEC). The U.S. Attorney’s Office for the Southern District of Florida is prosecuting the case. 

Read the press release.