The CEO of Praetorian Group International (PGI) was sentenced to 20 years in prison in the US for running a global Ponzi scheme that falsely claimed to invest in bitcoin and currency trading.
Ramil Ventura Palafox, 61, promised daily returns of up to 3%, deceiving more than 90,000 investors and draining more than $62.7 million in funds, according to a Thursday statement from the U.S. Attorney’s Office for the Eastern District of Virginia.
PGI raised more than $201 million from investors between the end of 2019 and 2021, including more than 8,000 bitcoins. according to court records. Instead of investing the money, prosecutors said Palafox used new funds from investors to pay old ones while diverting millions to himself.
To keep the illusion alive, Palafox created an online portal where investors could track their supposed profits, with completely made-up figures.
In reality, Palafox was buying Lamborghinis, luxury homes in Las Vegas and Los Angeles, and penthouse suites in high-end hotels. Prosecutors say he spent $3 million on luxury cars and another $3 million on designer clothing, watches and jewelry.
The case was investigated by the FBI and the IRS. Victims may be entitled to restitution. The SEC is pursuing civil penalties and Palafox remains prohibited from manipulating securities.
