The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Ramil Palafox, the CEO of PGI Global, accusing him of running a cryptocurrency Ponzi scheme that defrauded investors of $198 million.
According to the regulator, between January 2020 and October 2021, the company sold “membership packages” promising returns of up to 200%. These products were marketed as investments in an AI-based crypto and forex trading platform, but were actually a cover for selling unregistered securities.
Out of the funds raised, Palafox used over $57 million for personal expenses including buying cars, watches, and real estate for himself and his family.
The SEC further claims that Palafox manipulated data and used circular transfers to create a false impression of success on the platform, misleading investors.
PGI Global was dissolved in 2022 by a British court for running a fraudulent financial scheme. However, the affected investors have not yet been compensated.
The SEC is also targeting Palafox’s close relatives, who allegedly benefitted from the scheme, and is seeking to have them return the funds.
The SEC aims to impose a permanent ban on Palafox’s involvement in any cryptocurrency or multi-level marketing ventures.
As a reminder, on April 16, Joel Ferreira de Souza, the organizer of the Brazilian Ponzi scheme Braiscompany, was sentenced to 128 years in prison
