The U.S. Securities and Exchange Commission has charged Ramil Palafox with defrauding investors out of nearly $200 million through his company, PGI Global, which claimed to offer high-yield crypto and foreign exchange investments.
According to the SEC’s complaint filed in the U.S. District Court for the Eastern District of Virginia, Palafox operated the scheme from January 2020 to October 2021, selling “membership” packages that promised guaranteed returns and bonuses for recruiting new investors.
The agency alleges Palafox misused more than $57 million for personal expenses, including luxury cars and goods while paying out other investor funds in a Ponzi-like fashion.
Allegations of False Trading Claims
The SEC said PGI Global promoted itself as a tech-driven investment platform using artificial intelligence for trading. However, the complaint alleges that little to no trading occurred. Instead, Palafox used investor money to maintain the illusion of profitability by making payouts to earlier participants.
In addition to civil charges, Palafox has been criminally charged by the U.S. Attorney’s Office for the Eastern District of Virginia and was arraigned in federal court.
Relief Defendants and Enforcement Action
The SEC also named four relief defendants—BBMR Threshold LLC, Darvie Mendoza, Marissa Mendoza Palafox, and Linda Ventura—seeking the return of investor funds they allegedly received. The Commission is asking for permanent injunctions, the return of misappropriated funds with interest, and civil penalties.
“Palafox promised guaranteed profits backed by advanced trading technology but instead funnelled investor money into personal luxury,” said Laura D’Allaird, head of the SEC’s Cyber and Emerging Technologies Unit.
The FBI, IRS, and the U.S. Attorney’s Office assisted in the ingoing. investigation The SEC urged investors to remain cautious of schemes disguised as multi-level marketing programs and to visit Investor.gov for educational resources.
