PGI Global Founder Charged with $200 Million Securities Fraud Scheme
The U.S. SEC has charged Ramil Palafox, founder of defunct PGI Global, with violating federal securities laws, alleging a Ponzi-like scheme that defrauded investors of nearly $200 million. Key points include:
- Palafox allegedly misappropriated $57 million for luxury items including Lamborghinis and real estate.
- PGI Global operated from January 2020 to October 2021, attracting around 90,000 investors with promises of high returns, up to 3% daily.
- Instead of investing funds, Palafox enriched himself and repaid earlier investors until the scheme collapsed.
- He faces parallel criminal charges, including eight counts of wire fraud, and remains in custody due to ties to the Philippines.
- The SEC aims to recover investors' money plus penalties and seeks to prevent Palafox from future frauds.
- If convicted, Palafox could face 9 to 11 years in prison.
The DOJ has shifted its focus on crypto prosecutions, now targeting individuals who harm digital asset investors.