The CEO of Praetorian Group International (PGI) was sentenced to 20 years in prison in the United States 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%, misled more than 90,000 investors and drained more than $62.7 million in funds, according to a statement Thursday 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 over 8,000 bitcoin according to the court records. Instead of investing the money, prosecutors said Palafox used new investor funds to pay off old ones while pocketing millions for himself.
To keep the illusion going, Palafox built an online portal where investors could track their supposed profits, with numbers that were completely made up.
In reality, Palafox bought Lamborghinis, luxury homes in Las Vegas and Los Angeles, and penthouse suites in exclusive hotels. Prosecutors say he spent $3 million on luxury cars and another $3 million on designer clothes, watches and jewelry.
The case was investigated by the FBI and the IRS. Victims may be entitled to compensation. The SEC is pursuing civil penalties, and Palafox remains prohibited from dealing in securities.
