The CEO of Praetorian Group International (PGI) has been sentenced to 20 years in prison following his conviction for orchestrating a massive Ponzi scheme that lured over 90,000 investors with false promises of substantial returns on investments in bitcoin and foreign exchange trading. Ramil Ventura Palafox, 61, misled investors by offering daily returns of up to 3%, ultimately siphoning over $62.7 million from the scheme, according to the U.S. Attorney’s Office for the Eastern District of Virginia.
Between late 2019 and 2021, PGI reportedly collected more than $201 million from its investors, a sum that included over 8,000 bitcoin, valued at over $66,931 each at the time. Rather than investing the funds as promised, Palafox misappropriated the money, using new investment contributions to pay returns to earlier investors, thereby perpetuating the illusion of profitability.
To maintain the façade, Palafox created an online portal that allowed investors to track their supposed earnings, displaying fabricated profit figures. This deception not only bolstered his company’s credibility but also bought him time as he continued to manipulate the scheme.
Prosecutors detailed that Palafox indulged in a lavish lifestyle funded by investor money, which included purchasing luxury cars such as Lamborghinis, and investing in expensive real estate in Las Vegas and Los Angeles, along with high-end hotel penthouse suites. Reports indicate that he spent approximately $3 million on luxury automobiles and an additional $3 million on designer clothing, watches, and jewelry.
The case attracted significant attention and was investigated by the FBI and the IRS. Authorities have indicated that the victims of this fraud may be eligible for restitution. Additionally, the Securities and Exchange Commission (SEC) is pursuing civil penalties against Palafox, who has been permanently barred from participating in any securities trading activities.
