The US Securities and Exchange Commission (SEC) has taken action against Ramil Palafox, the founder of PGI Global, charging him with running a $198 million Ponzi scheme that duped investors across the globe. Palafox falsely represented PGI Global as a genuine business dealing in cryptocurrency assets and foreign exchange trading from January 2020 to October 2021.

### SEC Unveils $198 Million Fraud

According to the SEC’s complaint, Palafox offered “membership” packages promising high returns from PGI Global’s alleged trading activities. He also used multi-level marketing incentives to attract new investors. However, Palafox diverted more than $57 million of the funds for personal use, purchasing luxury items such as Lamborghinis, and used the rest to pay returns to previous investors, in a typical Ponzi scheme fashion, until the scheme collapsed in late 2021.

Scott Thompson, Associate Director of the SEC’s Philadelphia Regional Office, highlighted that Palafox leveraged the promise of guaranteed profits from trading in sophisticated markets to attract investors. Instead, he spent millions of investor funds on personal luxuries for himself and his family. Laura D’Allaird, Chief of the SEC’s Cyber and Emerging Technologies Unit, remarked on the deception by Palafox, using the crypto industry’s innovative appeal to mask a significant securities fraud.

The SEC’s legal action, filed in the US District Court for the Eastern District of Virginia, accuses Palafox of breaching federal anti-fraud and registration laws. The commission seeks to bar him from engaging in any multi-level marketing endeavors, demand restitution of unlawfully acquired gains, and impose civil penalties. Moreover, the complaint lists several relief defendants, including BBMR Threshold LLC and individuals connected to Palafox, for the return of their unjust profits. Parallel criminal charges have been filed against Palafox by the US Attorney’s Office for the Eastern District of Virginia.

### UK Authorities Take Action Against PGI Global

In 2022, the UK High Court took decisive measures against the UK branch of PGI Global for operating a fraudulent scheme promising up to 200% returns to investors. The company claimed to offer profitable digital asset investments but failed to meet these promises. The investigation revealed that PGI Global misappropriated over $700,000 from its users, with executives redirecting $225,000 into their personal accounts and spending $11,500 on luxury items, while Palafox did not cooperate with the authorities.

Tweet this: “SEC charges PGI Global founder in a $198 million Ponzi scheme, exposing a fraud that spanned across the globe. UK authorities also shut down its operations for defrauding investors. #SEC #PonziScheme #CryptoFraud”