The U.S. Department of Justice has handed down a severe sentence to Ramil Ventura Palafox, the CEO of a multi-level marketing and bitcoin trading firm, who has been sentenced to 20 years in prison following his conviction for wire fraud and money laundering linked to a significant Ponzi scheme.
Court documents reveal that Palafox, 61, was at the helm of Praetorian Group International (PGI), where he held roles as chairman, CEO, and primary promoter. He lured investors with promises of daily returns ranging from 0.5 to 3 percent through purported bitcoin trading operations.
Between December 2019 and October 2021, the scheme attracted over 90,000 investors globally, who collectively contributed more than $201 million to PGI. This total included upwards of $30 million in traditional currency and 8,198 bitcoins, valued at over $171 million. However, investor losses have been documented at a staggering minimum of $62.6 million.
During the years 2020 and 2021, Palafox was found to have manipulated the company’s online portal to present misleading information about account growth. This deceptive display purported to show increased value in investor accounts, creating a false sense of security and profitability for victims.
Prosecutors argued that instead of being invested as promised, a significant portion of the funds was squandered on personal expenses and further promotional activities for the fraudulent enterprise, exacerbating the financial devastation experienced by the victims involved in this scheme.
