Efrain Betancourt, Jr., 36, a dual citizen of Colombia and the United States, pleaded guilty on May 21 to orchestrating a $66 million Ponzi scheme through his payday loan company, Sky Group USA, LLC (Sky Group). He faces a maximum sentence of 20 years in prison.
Betancourt, who was the Chief Executive Officer and sole owner of Sky Group, admitted to making false statements to investors, promising their funds would be used for consumer loans and associated costs. Instead, he operated a Ponzi scheme, using new investor money to pay previous investors. Sky Group only generated approximately $12.2 million from consumer loans.
According to the U.S. Attorney's Office, Southern District of Florida, Betancourt misappropriated over $6.5 million for personal use, which included funding a luxurious wedding at a chateau in France and lavish vacations with friends and family. From January 2016 to March 2020, Betancourt and his co-conspirators raised approximately $66 million from over 600 investors.
U.S. Attorney Hayden P. O’Byrne, acting Special Agent in Charge Brett D. Skiles of the FBI Miami, and Commissioner Russell C. Weigel, III, Florida Office of Financial Regulation (OFR) announced the guilty plea.
The U.S. Securities and Exchange Commission (SEC) had a parallel proceeding against Betancourt, relating to the same investment fraud scheme alleged in the indictment, which was resolved in July 2022.
Betancourt’s sentencing hearing is scheduled for August 14 before U.S. District Judge Darrin P. Gayles.