Ramil Palafox, founder of PGI Global, has been charged by the Securities and Exchange Commission for allegedly conducting a $198 million fraudulent scheme that misled global investors with promises of guaranteed returns in crypto asset and foreign exchange trading.
The SEC stated that from January 2020 through October 2021, Palafox solicited investments through “membership” packages marketed by PGI Global, promising passive income derived from crypto and forex trading. He also offered referral rewards to incentivize participants to recruit new investors. According to the complaint, these claims were false, and Palafox misappropriated more than $57 million for personal purchases, including Lamborghinis, luxury goods, and property.
“Palafox attracted investors with the allure of guaranteed profits”
Scott Thompson, Associate Director of the SEC’s Philadelphia Regional Office, commented, “As alleged in our complaint, Palafox attracted investors with the allure of guaranteed profits from sophisticated crypto asset and foreign exchange trading, but instead of trading, Palafox bought himself and his family cars, watches, and homes using millions of dollars of investor funds.”
Laura D’Allaird, Chief of the SEC’s Cyber and Emerging Technologies Unit, commented, “Palafox used the guise of innovation to lure investors into lining his pockets with millions of dollars while leaving many victims empty-handed. In reality, his false claims of crypto industry expertise and a supposed AI-powered auto-trading platform were just masking an international securities fraud.”
Palafox is now banned from multi-level marketing and crypto asset offerings
The SEC’s complaint, filed in the U.S. District Court for the Eastern District of Virginia, charges Palafox with violations of anti-fraud and registration provisions under federal securities laws. The Commission is seeking permanent injunctive relief, conduct-based injunctions preventing future participation in multi-level marketing or crypto asset offerings, as well as disgorgement of ill-gotten gains with prejudgment interest and civil penalties.
In addition to Palafox, the SEC named BBMR Threshold LLC, Darvie Mendoza, Marissa Mendoza Palafox, and Linda Ventura as relief defendants, seeking the return of funds they allegedly received from the scheme.
Palafox also faces criminal charges in a parallel case brought by the U.S. Attorney’s Office for the Eastern District of Virginia, where he has been arraigned.
The SEC’s investigation remains active and is being handled by the Philadelphia Regional Office and the Market Abuse Unit. Litigation efforts are underway in coordination with the U.S. Attorney’s Office, the FBI, and the IRS.
The Commission reminded investors to remain vigilant and avoid schemes disguising as multi-level marketing operations. Educational resources are available through the SEC’s Office of Investor Education and Advocacy at Investor.gov.
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