A Colombian man has been arrested and charged with leading a $66 million Ponzi scheme disguised as a payday loan company, federal prosecutors in Miami announced Thursday.
Federal prosecutors say Efrain Betancourt, Jr., offered promissory notes to investors through Sky Group USA, LLC., with yearly returns ranging from 24% to 120%, with funds being used to disburse payday loans to clients.
However, millions of dollars from the promissory note investors were used to pay previous promissory note investors as part of the Ponzi scheme, said prosecutors in a statement.
Betancourt, Jr. also is alleged to have used more than $7.5 million of investor funds for personal use. If convicted of all charges, Betancourt, Jr. faces a maximum total penalty of 140 years' imprisonment.
