A Colombian national has admitted to defrauding investors in a $66 million Ponzi scheme to bankroll a life of luxury, including a chateau wedding in France. Efrain Betancourt, Jr., was the CEO of Sky Group USA, LLC, a payday loan company he used as a front for his fraudulent activities, as reported yesterday by the U.S. Attorney’s Office for the Southern District of Florida.
At a plea change hearing, Betancourt, 36, admitted to selling promissory notes to more than 600 unsuspecting investors from January 2016 through March 2020, claiming the funds would be used for consumer loans. The facts, however, tell a different story—a story where investor money was shuffled to pay off earlier investors in a classic Ponzi setup. Court documents show that the Sky Group made a mere $12.2 million from actual loans, while Betancourt was busy lining his own pockets and covering commissions that were never disclosed to investors.
U.S. Attorney Hayden P. O’Byrne stated, "Betancourt made materially false statements to investors regarding the use of their funds," illuminating that instead of business costs, the fund were spent on personal extravagances to the tune of over $6.5 million. This included Betancourt's lavish wedding and pricey vacations with friends and family.
The wheels of justice are now in motion for Betancourt, who's scheduled to be sentenced on August 14. He faces up to 20 years behind bars for his crimes. The matter was investigated by the FBI Miami, the FBI's South Florida Fraud Task Force, and the Florida Office of Financial Regulation, alongside assistance from the SEC’s Miami Regional Office. Assistant U.S. Attorney Roger Cruz is prosecuting the case, with Assistant U.S. Attorney Gabrielle Raemy Charest-Turken in charge of asset forfeiture.
While this saga is nearing its judicial endpoint, documents related to the case can be accessed through the Southern District of Florida's court website or at the PACER system, under the case number 24-cr-20399. The SEC had previously dealt with Betancourt in a parallel proceeding, which was resolved in July 2022.
