The U.S. Securities and Exchange Commission (SEC) has charged Ramil Palafox, the mastermind behind a flashy international fraud scheme that raised nearly $198 million from investors around the globe—only to funnel more than $57 million of it into Lamborghinis, luxury shopping sprees, and personal indulgence.
Operating under the name PGI Global, Palafox pitched his company as a cutting-edge crypto and forex trading platform. From early 2020 through late 2021, he lured investors with promises of guaranteed returns, high-tech trading bots, and the chance to earn even more cash by referring friends through a multi-level marketing-style setup.
But behind the polished pitch was a classic Ponzi scheme, according to the SEC’s complaint filed in federal court. Instead of trading crypto, Palafox was busy trading up to a lavish lifestyle—cars, watches, and high-end real estate—using investor cash. The rest of the funds? Mostly used to pay off earlier investors, keeping up the illusion of success until the entire operation collapsed in late 2021.
“Palafox promised easy, guaranteed profits through crypto trading, but instead he funneled millions into his own lifestyle,” said Scott Thompson, Associate Director of the SEC’s Philadelphia Regional Office. “We’ll keep fighting to protect investors from these kinds of sophisticated lies and schemes.”
Laura D’Allaird, who leads the SEC’s new Cyber and Emerging Technologies Unit, didn’t hold back either. “This was a textbook example of someone using buzzwords like ‘crypto’ and ‘AI’ to mask what was essentially international securities fraud,” she said.
The SEC is going after Palafox hard. The complaint seeks a permanent ban from marketing or selling crypto or investment products, the return of stolen funds (plus interest), and civil penalties. Several others—BBMR Threshold LLC, Darvie Mendoza, Marissa Mendoza Palafox, and Linda Ventura—have also been named as relief defendants for allegedly profiting from the scheme.
Meanwhile, in a parallel criminal case, Palafox has already been arraigned on federal charges brought by the U.S. Attorney’s Office for the Eastern District of Virginia.
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