By the Constantine Cannon Whistleblower Team
On April 22, 2025, the Securities and Exchange Commission charged Ramil Palafox, the founder of PGI Global, with orchestrating a $198 million fraud scheme that preyed upon international investors. He also allegedly misappropriated over $57 million of investor funds to purchase luxury items, including Lamborghinis. As in a classic Ponzi scheme, the remaining funds were used to pay investors their returns and referral awards until the scheme collapsed in 2021.
According to the SEC, PGI Global touted itself as an AI-powered auto-trading crypto asset and foreign exchange trading company. From 2020 to 2021, Palafox offered and sold PGI Global “membership” packages that he claimed would guarantee investors high returns from PGI Global’s automated trading platform. The company also offered members multi-level marketing-style incentives to refer individuals and encourage them to recruit new investors.
Laura D’Allaird, Chief of the SEC’s new Cyber and Emerging Technologies Unit, commented: “Palafox used the guise of innovation to lure investors into lining his pockets with millions of dollars while leaving many victims empty-handed. In reality, his false claims of crypto industry expertise and a supposed AI-powered auto-trading platform were just masking an international securities fraud.”
The SEC filed its complaint in the U.S. District Court for the Eastern District of Virginia and charges Palafox with violating federal securities laws, including the anti-fraud and registration provisions. The SEC is seeking “permanent injunctive relief, conduct-based injunctions preventing Palafox from participating in multi-level-marketing programs involving the offer or sale of securities and offerings of crypto assets bought or sold as a security, disgorgement of ill-gotten gains with prejudgment interest, and civil penalties.”
The complaint also named BBMR Threshold LLC, Darvie Mendoza, Marissa Mendoza Palafox, and Linda Ventura as relief defendants and seeks disgorgement of their ill-gotten gains and prejudgment interest.
In a parallel action, the U.S. Attorney’s Office for the Eastern District of Virginia has brought criminal charges against Palafox.
Securities Fraud Whistleblowers
Although this case did not mention whistleblowers, under the SEC Whistleblower Program, the government counts on those with knowledge of U.S. securities law violations to share this information. Eligible whistleblowers can receive from 10 percent to 30 percent of the monetary sanctions collected in actions brought by the government.
Constantine Cannon whistleblower partner Marlene Koury commented: “The SEC’s ability to enforce federal securities laws depends on insiders coming forward with information. Whistleblowers can submit information about any possible violations of the federal securities laws including schemes like this one, where companies prey on investors through false promises.”
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Whether you have information on securities fraud, wire fraud, or other types of misconduct, our firm can help. If you believe you have information about fraud, please contact our team to discuss your options as a potential whistleblower.
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Read SEC Charges Founder of Crypto Asset and Foreign Exchange Trading Company with $198 Million Fraud Scheme at constantinecannon.com
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