A Colombian man is facing charges in connection with a $66 million Ponzi scheme that authorities say he used to fund a Miami condo and a luxury chateau wedding in France.
Efrain Betancourt, Jr., 36, is charged in South Florida federal court with wire fraud and conspiracy to commit wire fraud, the U.S. Attorney's Office for the Southern District of Florida said in a news release Thursday.
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Betancourt, a Colombian citizen, was arrested Nov. 14 upon entering the United States.
According to prosecutors, Betancourt led the massive Ponzi scheme using a payday loan company, Sky Group USA, LLC.
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Betancourt offered promissory notes to Sky Group investors with yearly returns ranging from 24 to 120 percent, and told investors the funds would be used to disburse payday loans, prosecutors said.
The interest from the payday loans was supposed to be paid to investors, but prosecutors said money from new investors was used to pay previous investors.
Prosecutors said Betancourt also used over $7.5 million from the Ponzi scheme to fund a lavish lifestyle, which included a Miami condo, expensive jewelry, family vacations and a luxury chateau wedding in France.
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Over 600 people invested in Sky Group, many of whom were Venezuelan, authorities said.
Betancourt faces a maximum of up to 140 years in prison if convicted in the case.
