The SEC has formally charged Ramil Palafox and his company PGI Global for operating a fraudulent crypto investment scheme that allegedly stole nearly $200 million from global investors.
Membership Scams, Referral Traps
In a statement released on April 22, the SEC said PGI Global misled investors with “guaranteed high return” investment packages supposedly based on crypto and forex trading profits.
The firm also leveraged a referral system mimicking MLM tactics, incentivizing users to bring in fresh capital through new recruits. Palafox is accused of diverting at least $57 million for extravagant personal purchases, including luxury cars and designer items.
Funds from new investors were then used to pay older ones — a classic Ponzi scheme, according to the agency. PGI ultimately collapsed in 2021.
Fake AI Trading Claims
Laura D’Allaird of the SEC’s Cyber and Emerging Technologies Unit called Palafox’s claims about AI-powered trading a “mask for international securities fraud.”
The supposed platform lacked transparency or validation and was used as a marketing tool to lure unsuspecting victims.
Legal Case Underway
Filed in the Eastern District of Virginia, the SEC’s case includes injunctions and penalties that could bar Palafox from any future crypto MLM ventures. Relief defendants named include Linda Ventura and BMR Threshold LLC.
The investigation is being conducted in coordination with the FBI, IRS, and federal prosecutors. Scott Thompson, Associate Director at the SEC, emphasized the agency’s resolve:
“We won’t hesitate to act against those promising easy profits while stealing millions.”
