Ramil Palafox, founder of PGI Global, faces SEC and DOJ charges for a $200 million Ponzi scheme involving crypto investments. He misappropriated over $57 million in funds for luxury purchases. Approximately 90,000 investors were affected as Palafox allegedly failed to invest their money, choosing instead to enrich himself and repay earlier investors, leading to the scheme’s demise. Both agencies are focusing on recovering funds and imposing penalties on Palafox and associates.
Ramil Palafox, the founder of PGI Global, is accused of orchestrating a Ponzi-like scheme, defrauding investors of nearly $200 million. The U.S. Securities and Exchange Commission (SEC) alleges he misused over $57 million of the funds derived from customer investments to purchase luxury items, including Lamborghinis. He faces both civil and criminal charges related to the fraudulent activities.
PGI Global operated as a crypto investment scheme from January 2020 to October 2021, attracting approximately 90,000 investors worldwide. Clients purchased membership packages with promises of high returns, offering up to 3% daily and a total return of 200%. Instead of investing these funds, Palafox reportedly enriched himself and provided payouts to earlier investors, leading to the scheme’s collapse.
The SEC’s Cyber and Emerging Technologies Unit criticised Palafox for misleading investors under the guise of crypto industry expertise, including claims of an AI-driven auto-trading platform. With new leadership, the SEC is shifting its approach to crypto regulation but remains committed to prosecuting securities fraud related to digital assets.
The Department of Justice (DOJ) is collaborating with the SEC to recover funds for victims while seeking to penalise Palafox and his accomplices, including family members. If found guilty, Palafox faces the possibility of 9 to 11 years in prison.
Palafox’s legal representative has refrained from making comments on the ongoing legal proceedings. Efforts to recover finances for defrauded investors remain a priority for both the SEC and DOJ as they seek injunctive relief and civil penalties within the case.
