The SEC has charged Ramil Palafox, founder of PGI Global, with running a Ponzi-like scheme that defrauded investors of nearly $200 million. Palafox misappropriated over $57 million of customer funds for luxury purchases, including Lamborghinis and real estate. The scheme operated from January 2020 through October 2021, attracting around 90,000 investors with promises of high returns, yet Palafox allegedly enriched himself while paying earlier investors with subsequent funds until the operation collapsed. The DOJ has issued a 23-count indictment against him, including eight counts of wire fraud. The SEC is pursuing recovery of funds for investors and seeking penalties against Palafox and his family members. If convicted, he faces a prison sentence ranging from 9 to 11 years. The SEC's actions come amidst a regulatory shift in the U.S., focusing on holding individuals accountable for securities fraud in the crypto space.

Source đź”—