Tr?id=566623520170033&ev=PageView&noscript=1

SEC Charges Crypto Promoter in $198 Million Fraud Scheme

Posted on May 14th, 2025 at 11:46 AM
SEC Charges Crypto Promoter in $198 Million Fraud Scheme

From the desk of Jim Eccleston at Eccleston Law

The Securities and Exchange Commission (“SEC”) has charged Ramil Palafox for orchestrating a massive securities fraud scheme through his now-defunct company, PGI Global (Praetorian Group International Corporation). According to the SEC’s complaint, Palafox raised approximately $198 million from investors around the world and misappropriated over $57 million for personal use.

AltsWire reports that, between January 2020 and October 2021, Palafox marketed and sold “membership” packages in PGI Global, which he claimed would generate high returns through crypto asset and foreign exchange trading. Investors were promised referral incentives in a multilevel-marketing-style operation designed to draw in new participants.

The SEC alleges Palafox and his promoters made numerous material misrepresentations. They falsely claimed Palafox held crypto industry expertise, maintained a team of traders, and operated an artificial intelligence-driven auto-trading platform.

Instead of trading, Palafox allegedly used investor funds to purchase luxury vehicles, designer goods, and personal items. The bulk of the remaining funds were used to pay earlier investors in a Ponzi-like arrangement, which unraveled by late 2021.

AltsWire reports that PGI Global never filed a registration statement for its membership package offerings, violating the registration provisions of federal securities laws. The SEC’s complaint, filed in the U.S. District Court for the Eastern District of Virginia, charges Palafox with violating anti-fraud and registration provisions and seeks permanent injunctive relief, conduct-based injunctions, disgorgement with prejudgment interest, and civil penalties.

The SEC also named BBMR Threshold LLC, Darvie Mendoza, Marissa Mendoza Palafox, and Linda Ventura as relief defendants, seeking disgorgement of ill-gotten gains transferred to them by Palafox.

In a parallel criminal action, the U.S. Attorney’s Office for the Eastern District of Virginia arraigned Palafox on related charges.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory, and disciplinary matters.

Tags: eccleston, eccleston law, sec

Return to Archive

TESTIMONIALS

Previous
Next
Quotes Bigger

You were most helpful with my FINRA deposition. You are a good lawyer and a good person.

Dan B.

LATEST NEWS AND ARTICLES

1791996515 Law
October 14, 2026
FINRA Study Finds Advanced Investment Knowledge Does Not Eliminate Fraud Risk

Research using the FINRA Investor Education Foundation's 2024 National Financial Capability Study found that fewer than one in five investors with non-retirement investments demonstrate advanced investment literacy.

1791918358 Law
October 13, 2026
LPL Financial Faces Investor Claims Tied to Former Broker's Outside Activities

LPL Financial faces at least nine pending investor claims involving former El Paso, Texas broker Michael C.

1791818498 Law
October 12, 2026
SEC Targets Companies in Alleged $15 Million Social Media Investment Fraud Schemes

The Securities and Exchange Commission (SEC) has charged entities behind two alleged investment fraud schemes that raised more than $15 million from investors through WhatsApp, Facebook and other online platforms.