Ramil Palafox, founder of PGI Global, faces SEC and DOJ charges for running a Ponzi-like scheme, defrauding investors of nearly $200 million. Misappropriating over $57 million, he used funds for luxury items instead of actual investments. Both the SEC and DOJ are aiming to recover investor funds, with potential prison time of 9 to 11 years for Palafox if convicted.
The U.S. Securities and Exchange Commission (SEC) has charged Ramil Palafox, founder of the now-defunct PGI Global, with operating a Ponzi-like scheme that allegedly defrauded investors of nearly $200 million. Palafox reportedly misappropriated over $57 million from customer funds for luxury purchases, including Lamborghinis and real estate. He faces both civil and criminal charges related to these activities.
PGI Global operated from January 2020 to October 2021, attracting approximately 90,000 investors with promises of significant returns—up to 3% daily and a total return of 200%. However, instead of investing the funds, Palafox allegedly used a significant portion to enrich himself and pay previous investors. This led to the eventual collapse of the scheme.
Laura D’Allaird, chief of the SEC’s Cyber and Emerging Technologies Unit, commented on Palafox’s deceptive tactics, stating that he exploited investor trust through bogus claims of expertise in cryptocurrency and an alleged auto-trading platform. Despite a shift in the SEC’s crypto regulation strategies, the agency remains committed to targeting fraudulent schemes.
The Department of Justice (DOJ) has also refocused its prosecution efforts, directing staff to target individuals who exploit digital asset investors. In Palafox’s case, the SEC is working to recover investors’ funds along with interest and civil penalties, and is pursuing additional financial recovery from several family members involved.
If convicted, Palafox could face 9 to 11 years in prison, according to the DOJ’s court submission. His legal counsel has yet to provide comments on the charges against him.
