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Ramil Ventura Palafox, the CEO of Praetorian Group International (PGI), has been sentenced to 20 years in prison for orchestrating a financial pyramid scheme that affected over 90,000 investors globally. The total damage caused by his actions is estimated at $62.7 million.
The 60-year-old national of the United States and the Philippines held the positions of CEO, chairman, and chief promoter of PGI. From December 2019 to October 2021, Palafox actively solicited investors for the project, assuring them that his company was engaged in high-volume Bitcoin trading and guaranteed daily returns ranging from 0.5% to 3%. However, investigations revealed that PGI did not conduct trading at a scale capable of delivering the promised returns. Instead, the leader utilized funds from new investors to pay the promised amounts to earlier participants.
Over the course of two years, investors contributed more than $201 million to PGI. This amount included at least $30.3 million in cash and 8,198 Bitcoins, which were valued at approximately $171.5 million at that time. Palafox maintained a website and online portal for PGI, where he showcased a consistent increase in investor returns. This misled victims into believing that their earnings were growing and their accounts were secure, according to court documents.
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The prosecution claims that a significant portion of the raised funds was spent by Palafox on a lavish lifestyle. Approximately $3 million was used to purchase 20 luxury vehicles. An additional $329,000 was spent on accommodations in upscale hotel penthouses. More than $6 million was invested in the acquisition of four homes in Las Vegas and Los Angeles. Around $3 million was also spent on designer clothing, watches, jewelry, and home decor from brands such as Gucci, Cartier, Rolex, and Hermès. Furthermore, Palafox transferred at least $800,000 and 100 BTC (equivalent to $3.3 million at that time) to a family member.
In September of last year, Palafox pleaded guilty to charges of wire fraud and money laundering. He agreed to pay $62.7 million in restitution.
Previously, former SafeMoon CEO Braden John Karony was sentenced to 100 months in prison after being found guilty of fraud involving the company’s tokens.
