SEC prosecutes PGI Global 'kingpin' for fraudulent multi-level marketing and embezzling $57M

Ramil Palafox, the founder of PGI Global from the Philippines, has been charged by the SEC for organizing a multi-level marketing scheme to raise $198M from investors, then siphoning off more than $57M to purchase luxury cars, expensive watches, and real estate.

From 2020-2021, PGI Global advertised itself as a trading platform for crypto and forex with promises of huge profits and attracted investors through a referral system. In reality, the money was mainly used to pay old investors, while the rest flowed into Palafox's pockets.

The SEC is seeking to ban Palafox from involvement in securities or crypto, while also demanding the recovery of all embezzled funds. Additionally, Palafox faces criminal charges as a result of a joint investigation by the FBI and IRS.$ETH