The U.S. Securities and Exchange Commission (SEC) has charged Ramil Palafox, CEO of PGI Global, with defrauding investors out of $198 million through a fraudulent international cryptocurrency and forex trading scheme.
According to the SEC’s official statement, Palafox misused more than $57 million of investor funds to purchase luxury cars, designer goods, and cover personal expenses.
PGI Global was presented as a crypto asset and foreign exchange trading company. From January 2020 to October 2021, Palafox allegedly lured investors by selling membership packages that promised high returns. These packages were tied to the company’s supposed trading activities and offered multi-level-marketing-style incentives, encouraging members to recruit new investors.
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The SEC filed its complaint in the U.S. District Court for the Eastern District of Virginia, asking for permanent injunctions, financial penalties, and the recovery of illegally obtained funds. In addition to the civil charges, Palafox is also facing separate criminal proceedings brought by the U.S. Attorney’s Office for the same district.