SEC Charges PGI Global Founder Over $200M Crypto Ponzi Scheme

The U.S. Securities and Exchange Commission (SEC) has charged Ramil Palafox, 59, founder of PGI Global, in a crypto Ponzi-like scheme that defrauded investors out of nearly $200 million. The now-defunct investment company, based in Las Vegas, targeted approximately 90,000 global investors between January 2020 and October 2021 with promises of daily returns up to 3% and a 200% total return on crypto and forex investments.

Instead of investing the funds, Palafox allegedly used $57 million of client money to purchase Lamborghinis, real estate, and luxury goods, while the rest was used to repay earlier investors — a classic hallmark of a Ponzi scheme. The SEC alleges that his promises of an AI-powered auto-trading platform and crypto expertise were fraudulent.

Palafox also faces criminal charges from a 23-count indictment filed in Virginia, including eight counts of wire fraud. Due to his dual citizenship and "substantial ties" to the Philippines, the court has ordered he remain in custody.

The SEC is seeking to recover investor funds, impose civil penalties, and ban Palafox from future investment activity. The agency is also pursuing financial recovery from his wife, Marissa Mendoza Palafox, and brother-in-law, Darvie Mendoza, who allegedly benefited from the scheme.

This case comes amid a shift in U.S. crypto enforcement policy. Under President Trump’s second term, the SEC has reduced regulation-by-enforcement but continues to target fraud. The Department of Justice has similarly narrowed its focus, now prioritizing prosecution of individuals behind major crypto frauds.

If convicted, Palafox faces a potential prison sentence of 9 to 11 years. His legal counsel has declined to comment on the charges.