The U.S. Securities & Exchange Commission filed a civil enforcement action against Ramil Palafox, alleging he orchestrated a fraud through PGI Global that raised approximately USD 198 million from investors worldwide and misappropriated more than USD 57 million of investor funds. According to the SEC’s complaint, from January 2020 through October 2021 Palafox sold PGI Global “membership” packages marketed as guaranteeing high returns from purported crypto asset and foreign exchange trading, alongside multi-level-marketing-style referral incentives. The SEC alleges investor funds were used for personal purchases, while most remaining funds were used to pay supposed returns and referral rewards in a Ponzi-like scheme until PGI Global’s collapse in late 2021. The complaint, filed in the U.S. District Court for the Eastern District of Virginia, alleges violations of federal securities law anti-fraud and registration provisions and seeks permanent and conduct-based injunctions (including restrictions on participation in multi-level-marketing programs involving securities and offerings of crypto assets bought or sold as a security), disgorgement plus prejudgment interest, and civil penalties; it also names BBMR Threshold LLC, Darvie Mendoza, Marissa Mendoza Palafox, and Linda Ventura as relief defendants for disgorgement and prejudgment interest. In a parallel action, Palafox was arraigned on criminal charges brought by the U.S. Attorney’s Office for the Eastern District of Virginia.
U.S. Securities & Exchange Commission 2025-04-22
U.S. Securities & Exchange Commission charges PGI Global founder with USD 198 million crypto asset and foreign exchange fraud scheme
The U.S. Securities & Exchange Commission (SEC) filed a civil enforcement action against Ramil Palafox, alleging a USD 198 million fraud through PGI Global, with over USD 57 million misappropriated. The SEC claims Palafox marketed high-return "membership" packages and operated a Ponzi-like scheme until PGI Global's collapse in 2021. The complaint seeks injunctions, disgorgement, and penalties, and names additional relief defendants; Palafox also faces criminal charges from the U.S. Attorney’s Office for the Eastern District of Virginia.