SEC Initiates Legal Action Against PGI Global Founder for Alleged $198 Million Fraud
The Securities and Exchange Commission (SEC) has taken legal action against Ramil Ventura Palafox, the founder of PGI Global, amid allegations of a large-scale fraud scheme involving cryptocurrencies and foreign exchange trading. The case was formally filed on April 22, 2025, in the Eastern District of Virginia, under civil litigation release number 26295.
Allegations of Fraud
The SEC’s complaint outlines a troubling narrative of deceit, claiming that between January 2020 and October 2021, Palafox misled global investors into purchasing memberships in PGI Global for a total of around $198 million. Investors were enticed with promises of high returns generated from the company’s trading operations, which were depicted as legitimate.
Additionally, they were encouraged to recruit others into the scheme through a multi-level marketing approach that offered referral incentives.
Misuse of Funds
However, investigations reveal that Palafox diverted more than $57 million of these funds for personal use, including lavish purchases such as luxury cars from Lamborghini and other high-end retail items. Moreover, he allegedly used a significant portion of the investors’ money to pay purported returns to earlier participants, mimicking a classic Ponzi scheme structure until the operation collapsed in late 2021.
Regulatory Actions
The SEC’s filings accuse Palafox of breaching the anti-fraud and registration provisions of federal securities laws. The regulatory body is seeking various forms of relief, which include permanent injunctions barring him from engaging in multi-level marketing and securities transactions, along with recovering his ill-gotten gains with interest and imposing civil fines.
In addition to Palafox, the SEC has also identified BBMR Threshold LLC, as well as individuals Darvie Mendoza, Marissa Mendoza Palafox, and Linda Ventura as relief defendants, aiming to recover profits obtained through these alleged fraudulent actions.
Criminal Charges and Ongoing Investigations
Simultaneously, Palafox faces criminal charges from the U.S. Attorney’s Office for the Eastern District of Virginia, following a parallel investigation. The SEC continues to probe these matters, with investigations being led by officials from the Philadelphia Regional Office and the Market Abuse Unit, under the supervision of senior staff. Collaboration has been noted with federal agencies including the FBI and IRS in this ongoing case.
