The CEO of Praetorian Group International (PGI) has been sentenced to 20 years in prison in the United States for running a global Ponzi scheme that falsely claimed to invest in bitcoin and foreign exchange trading.
Ramil Ventura Palafox, 61, promised daily returns of up to 3 percent, deceiving more than 90,000 investors and draining more than $62.7 million in funds, according to a statement released Thursday by 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 investors’ funds to pay off old ones while siphoning off millions for himself.
To maintain the illusion, Palafox built an online portal where investors could track their supposed profits, with entirely fabricated 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 clothes, watches and jewelry.
The matter was investigated by the FBI and the IRS. Victims may be entitled to compensation. The SEC pursues civil penalties and Palafox remains prohibited from managing securities.
