SEC Accuses PGI Global CEO of $198 Million Cryptocurrency Fraud

The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against PGI Global CEO Ramil Palafox, accusing him of orchestrating a cryptocurrency pyramid scheme that amassed $198 million from clients.

According to the regulator, from January 2020 to 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 essentially a front for selling unregistered securities.

The SEC noted that Palafox used over $57 million of the funds for personal expenses, including purchasing cars, watches, and homes for himself and his relatives.

The regulator accused Palafox of engaging in sham activities: using circular transfers and data manipulation to mislead investors by showcasing the platform’s fictitious success.

PGI Global was liquidated in 2022 by a UK court order for operating a fraudulent financial scheme. However, investors have yet to be compensated for their losses.

Close relatives of Palafox are named in the case. The SEC seeks to compel them to return the assets they received.

The Commission aims to secure a complete ban on Palafox’s participation in projects related to cryptocurrencies or multi-level marketing.

In April, the organizer of the Brazilian cryptocurrency Ponzi scheme Braiscompany, Joel Ferreira de Souza, was sentenced to 128 years in prison.