Founder of PGI Global Faces Fraud Charges Over Alleged $200 Million Ponzi Scheme
Ramil Palafox is accused of misusing over $57 million from investor funds for personal luxuries, including luxury cars.
Founder of PGI Global Faces Fraud Charges Over Alleged $200 Million Ponzi Scheme
The United States Securities and Exchange Commission (SEC) has charged Ramil Palafox, the founder of PGI Global, with violating federal securities laws by allegedly orchestrating a Ponzi-like scheme that deceived investors out of nearly $200 million. According to allegations, he improperly used more than $57 million of customer funds for extravagant purchases like Lamborghinis and real estate.
Key Points:
- The SEC asserts that Palafox diverted investor money intended for a crypto investment program, which operated from January 2020 to October 2021, and did not make legitimate investments.
- Instead of delivering the promised returns on investments of up to 3% daily, he used new investors’ funds to repay earlier participants until the operation eventually collapsed.
- Palafox, 59, who has substantial ties to the Philippines, remains in custody post a Virginia grand jury indictment that includes charges of wire fraud.
“Palafox exploited a facade of innovation to deceive and enrich himself while leaving victims without recourse,” stated Laura D’Allaird from the SEC. “His claims of being an expert in the crypto field were merely a cover for a global fraud operation.”
With the SEC’s new approach to regulating cryptocurrencies, they are emphasizing enforcement against individuals committing securities fraud within the industry. Meanwhile, the Department of Justice (DOJ) also focuses its efforts on preventing schemes that exploit digital asset investors.
As it stands, the SEC aims to secure restitution for investors, including seeking penalties and injunctions to prevent future fraud. Palafox’s case has raised significant concerns about investor protection in the evolving crypto market.
