PGI Global and its CEO Ramil Palafox are facing SEC charges for allegedly running a Ponzi-style fraud scheme that scammed investors out of nearly $200 million, leveraging promises of crypto and forex trading profits.

High-Yield Lies and MLM Tactics

As per the April 22 press release, PGI Global sold fraudulent “membership packages” advertising risk-free gains. The company also deployed a multi-level referral strategy, pushing customers to bring in new investors under false promises.

Behind the scenes, Palafox is said to have siphoned $57 million for his own use — purchasing a Lamborghini, luxury real estate, and other expensive goods. The remaining money was recycled to pay returns to older investors, following the Ponzi model until the company collapsed in late 2021.

Tech Buzzwords Hide a Classic Fraud

SEC officials say that Palafox used industry buzzwords like “AI auto-trading” and “blockchain innovation” to build credibility and gain trust, but none of it held up under scrutiny.

“Palafox sold dreams and delivered fraud,” said Laura D’Allaird, calling his AI-powered platform a “digital disguise for deception.”

SEC Seeks Ban and Further Action

Filed in Virginia’s Eastern District, the SEC complaint also lists relief defendants and aims to prohibit Palafox from participating in crypto-based MLM or securities promotion schemes.

The ongoing probe is backed by multiple agencies including the FBI and IRS. Scott Thompson of the SEC said the case shows how deeply luxury and fraud were intertwined in PGI’s operation and warned that the Commission is prepared to act “aggressively” against such deceit.