The US Securities and Exchange Committee (Sec) accused Ramil Palafox, founder of the Crypto Company PGI Global, who organized a huge $ 198 million ponz scheme that mislead investors around the world.
Palafox is accused of cheating investors by promoting PGI Global as a legal crypto and exchange trade business from January 2020 to October 2021.
$ 198 million ponz scheme revealed
Sec complaint In detail that Palafox sold “Membership” packages that promised high yield from PGGI Global allegedly trading, while also providing multi -level marketing -style incentives to encourage new investors.
In fact, Palafox acquired over $ 57 million from investor funds for personal costs, including luxury goods such as Lamborghinis. Most of the other tools were used to pay income to previous investors in the classic Ponz scheme until it collapsed in late 2021.
SEC Philadelphia Regional Office Associate Professor Scott Thompson said
“As our complaint stated, Palafox attracted investors who are gaining guaranteed profits of sophisticated cryptocurrencies and currency exchange trade, but instead of trading, Palafox bought himself and his family cars, watches and homes using millions of dollars in investor funds.”
Laura D'Onird, Head of the SEC cyber and evolving technology unit, described the activities of Palafox to entice the innovation of the crypto industry to cheat investors and mask large-scale securities.
The complaint of SEC, filed by the District Court of the eastern US Virginia, has been accused of violating the Federal Federal Fraud and Registration Provision. Its purpose is to prevent him from participating in multi -level marketing programs, requires poorly acquired benefits and requires civil penalties.
In addition, the complaint names several assisted accused, including the BBMR threshold LLC and individuals related to Palafox, looking for their poorly procured funds. Palafox is also faced with criminal charges, parallel to the law firm of the Eastern Virginia district of Virginia.
Suppression in the UK
In 2022 the Supreme Court of the United Kingdom close Kavi Global's United Kingdom Department allegedly for organizing a deceptive scheme that promised investors' returns up to 200%. The company claimed to offer profitable digital assets investment but failed to fulfill its promises.
The authorities decided that PGGI Global stole over $ 700,000 from users, with leaders channeling $ 225,000 to personal accounts and spent $ 11,500 on luxury goods. In the meantime, Palafox allegedly refused to cooperate.
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