The U.S. Securities and Exchange Commission (SEC) has filed charges against Ramil Palafox and his firm PGI Global, accusing them of orchestrating a $198 million Ponzi-like fraud involving cryptocurrency and foreign exchange schemes.
PGI Global’s Deceptive Operations Exposed
In an April 22 press release, the SEC revealed that PGI Global lured investors through the sale of “membership packages” that promised guaranteed high returns from automated trading in crypto and forex.
To expand the scheme, the company also offered multi-level marketing-style referral rewards, pushing participants to bring in new recruits under the illusion of passive wealth.
However, the SEC claims Palafox misused $57 million for personal luxury purchases — including a Lamborghini, designer items, and expensive homes — while the remaining funds were used to pay earlier investors, creating a Ponzi-style payout cycle until PGI collapsed in late 2021.
False Innovation and Real Fraud
According to Laura D’Allaird, head of the SEC’s Cyber and Emerging Technologies Unit, Palafox masked the fraud using buzzwords like “crypto” and “AI auto-trading” while defrauding investors.
“He exploited the allure of innovation to fill his own pockets,” she said. “The technology narrative was just a smokescreen.”
SEC Seeks Justice
Filed in the U.S. District Court for the Eastern District of Virginia, the SEC complaint accuses Palafox of violating federal securities laws and names several relief defendants, including Darvie and Marissa Mendoza Palafox.
The agency seeks injunctions to ban Palafox from promoting or participating in any crypto-related MLM schemes going forward.
The FBI, IRS, and U.S. Attorney’s Office are assisting in the ongoing probe. SEC official Scott Thompson confirmed Palafox spent millions of investor funds on personal luxuries, pledging continued action against crypto scammers preying on unsuspecting investors.
