A Colombian businessman stands accused of orchestrating a $66 million Ponzi scheme, allegedly funding a luxury Miami condo, extravagant vacations, and a fairytale wedding at a French chateau.
Efrain Betancourt, Jr., 36, now faces wire fraud and conspiracy to commit wire fraud charges in a South Florida federal court. The U.S. Attorney’s Office for the Southern District of Florida disclosed the allegations Thursday, revealing the scale of the financial deception. Betancourt was arrested on November 14 upon entering the United States.
Payday Loan Empire or Elaborate Scam?
Authorities say Betancourt operated the scheme through his payday loan company, Sky Group USA, LLC. Investors were enticed with promissory notes offering annual returns of 24% to 120%. Betancourt allegedly assured them their funds would be used to issue payday loans, promising profits from the loan interest.
Instead, prosecutors claim Betancourt ran a classic Ponzi scheme—using money from new investors to pay returns to earlier ones. The scheme allegedly unraveled as funds were siphoned off to support his opulent lifestyle.
Lavish Spending Detailed by Prosecutors
Prosecutors allege Betancourt used over $7.5 million of the defrauded funds to indulge in luxury. This included purchasing a Miami condo, acquiring expensive jewelry, taking high-end family vacations, and hosting an extravagant wedding in France.
The federal charges underscore the severity of the alleged fraud, which left many investors financially devastated.
