The U.S. Department of Justice sentenced the CEO of a multi-level marketing and bitcoin trading firm to 20 years in prison after a conviction for wire fraud and money laundering tied to a large scale Ponzi scheme.
Court records show that Ramil Ventura Palafox, 61, owned and controlled Praetorian Group International, known as PGI, where he served as chairman, CEO, and primary promoter. He told investors the company conducted bitcoin trading and promised daily returns between 0.5 and 3 percent.
Between December 2019 and October 2021, more than 90,000 investors worldwide placed over $201 million into PGI, including more than $30 million in fiat currency and 8,198 bitcoin valued at over $171 million during the period reviewed by the court. Documented investor losses reached at least $62.6 million.
From 2020 through 2021, Palafox directed the company’s online portal to display false account growth that showed investor funds increasing in value and led victims to believe their investments were profitable and secure.
According to prosecutors, “the funds were spent on personal expenses and on promoting the fraudulent scheme.”
