US SEC Charges PGI Global Founder in $198M Crypto Ponzi Scheme
The US Securities and Exchange Commission sued the founder and CEO of PGI Global, now a defunct crypto and foreign exchange trading company, for operating a $198 million fraudulent scheme.
On April 22, the US SEC filed a lawsuit against 59-year-old Ramil Palafox, the Praetorian Group International Corporation – PGI Global founder, for allegedly attracting investors into a Ponzi scheme and misappropriating millions of investor funds.
According to the complaint, PGI Global raised about $198 million in Bitcoin and fiat currencies from investors between January 2020 and October 2021, promising high returns. However, Palafox used more than $57 million of this money for personal expenses, including luxury cars, watches, and homes for himself and his family.
PGI Global encouraged investors to buy membership packages that guaranteed high returns from crypto asset trading and Forex trading. In addition, the company implemented a multi-level marketing strategy of referral incentives to recruit more people.
The SEC’s investigation alleges that millions of dollars were used on Lamborghinis and items from retailers including Cartier, Versace, and Louis Vuitton. Meanwhile, Palafox transferred most of the remaining funds to investors as trading earnings and rewards. However, the funds were circulating from old investors to new ones.
In late 2021, PGI Global collapsed.
The SEC’s filing accuses Ramil Palafox of violating the anti-fraud and registration provisions of the federal securities laws.
The Commission asks the court to permanently bar Palafox from joining any multi-level marketing schemes that involve selling securities or crypto assets treated as securities. It also seeks to recover the money he gained illegally, along with interest, and to impose civil penalties.
Related: Fast Money, Fake Riches—How Young Crypto Scammers Burn Out Fast
In a parallel case, Palafox faces criminal charges filed by the U.S. Attorney’s Office in the Eastern District of Virginia.
According to Laura D’Allaird, Chief of the Commission’s new Cyber and Emerging Technologies Unit, Palafox used the promise of innovation to lure investors in, pocketing millions while leaving many of them with nothing.
In reality, his false claims of crypto industry expertise and a supposed AI-powered auto-trading platform were just masking international securities fraud,
she added.
BBMR, another company named in the lawsuit, is accused of working with PGI. The SEC claims that BBMR and its co-managers – Darvie Mendoza, Marissa Mendoza Palafox, and Linda Ventura profited by holding and transferring PGI’s assets without having legitimate claims to those investor funds.
Related: The Top Cryptocurrency Scams to Watch Out for in 2025
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