According to ChainCatcher, the US SEC has accused PGI Global founder Ramil Palafox of orchestrating fraud, raising approximately $198 million from global investors and misappropriating over $57 million in funds.
The SEC stated that PGI Global claimed to be a cryptocurrency and forex trading company. From early 2020 to October 2021, Palafox sold "membership" packages, promising high returns and establishing a pyramid-like referral reward mechanism to encourage recruiting. Palafox used investor funds to purchase luxury goods and for personal expenses, while the remaining funds were used in a Ponzi scheme to pay returns to early investors until the fraud was exposed in late 2021.
The SEC has filed a lawsuit in the Eastern District of Virginia, accusing him of violating federal securities laws and seeking an injunction, recovery of illegal gains, and civil penalties. The lawsuit also lists BBMR Threshold LLC and several individuals as relief defendants.
