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

As a financial advisor with over 20 years of experience, I feel fortunate to call Jim my attorney and friend. He is a fantastic lawyer and trusted advisor. He is skilled in the matters necessary to do the job well. He uses his thoughtful approach and calm demeanor to achieve a positive outcome for the client. If you want to feel confident that nothing will be missed and that you will be represented in a highly professional manner, call Jim Eccleston.

Bill C. and Dan M.

LATEST NEWS AND ARTICLES

November 7, 2025
FINRA Suspends Former Wells Fargo Broker Over Unapproved Real Estate Venture

The Financial Industry Regulatory Authority (FINRA) suspended former Wells Fargo broker George J. Cairnes for four months and fined him $25,000 for engaging in unapproved real estate outside business activity, according to a settlement letter issued.

November 6, 2025
Former Ameriprise Broker Ordered to Pay $2.2 Million for Elder Exploitation

A Financial Industry Regulatory Authority (FINRA) arbitration panel has ordered Eric A. Dupre to pay nearly $2.2 million in damages to his former firm and two customers following allegations of theft and elder exploitation.

November 5, 2025
Former Wells Fargo Representative Suspended for Unauthorized Texting and Obstruction

The Financial Industry Regulatory Authority (FINRA) has suspended former Wells Fargo representative Eyan M. Townsend for one year and fined him $10,000 for using personal text messages to conduct business and attempting to obstruct an internal investigation by deleting those communications.