🕵️ The Scheme Uncovered
From January 2020 to October 2021, Ramil Palafox attracted investors worldwide to his company, PGI Global, with promises of high returns from crypto asset and foreign exchange trading. Investors bought into membership packages that guaranteed lucrative returns and referral incentives. However, instead of trading, Palafox allegedly used $57 million of investor funds to buy Lamborghinis, luxury items, and cover personal expenses. The rest of the funds were used to pay other investors in a classic Ponzi-like scheme.
🚓 SEC's Investigation
Scott Thompson from the SEC’s Philadelphia Regional Office stated, > "Palafox attracted investors with the allure of guaranteed profits but instead bought cars, watches, and homes using millions of dollars of investor funds." The SEC's investigation is spearheaded by Michael Cuff, Polly Hayes, and Assunta Vivolo, supervised by Laura D’Allaird and Scott Thompson. The litigation team includes Spencer Willig, Gregory Bockin, and Eugene Hansen from SEC Headquarters.
🏛️ Legal Proceedings
The SEC filed a complaint in the U.S. District Court for the Eastern District of Virginia, charging Palafox with violating federal securities laws. The complaint seeks permanent injunctive relief, disgorgement of ill-gotten gains, and civil penalties. Relief defendants named include BBMR Threshold LLC, Darvie Mendoza, Marissa Mendoza Palafox, and Linda Ventura. In parallel, Palafox faces criminal charges from the U.S. Attorney’s Office for the Eastern District of Virginia.
📢 Investor Protection
The SEC’s Office of Investor Education and Advocacy advises investors to be cautious of pyramid schemes posing as multi-level marketing programs. Investors can find resources on detecting and avoiding fraud at Investor.gov.
