Ramil Ventura Palafox, the CEO of Praetorian Group International (PGI), was sentenced to 20 years in prison for running a Ponzi scheme that defrauded more than 90,000 investors worldwide. The sentencing took place in Alexandria, Virginia.
Court documents show that Palafox, a dual citizen of the United States and the Philippines, led PGI as its Chairman and chief promoter. He told investors that PGI was involved in bitcoin trading and promised daily returns between 0.5% and 3%. However, the company did not trade bitcoin at levels needed to deliver these returns. Instead, Palafox used funds from new investors to pay earlier ones.
Between December 2019 and October 2021, PGI attracted over $201 million from investors around the world. This included more than $30 million in fiat currency and over 8,000 bitcoin valued at about $171 million during that period. Investors lost at least $62 million due to the scheme.
Palafox set up a website where investors could check their supposed investment gains. From 2020 through 2021, this online portal falsely showed positive performance and security of investments.
According to investigators, Palafox spent millions on personal expenses using investor money. He bought about $3 million worth of luxury vehicles from brands such as Porsche, Lamborghini, McLaren, Ferrari, BMW, Bentley and others. He also spent roughly $329,000 on penthouse suites at luxury hotels and purchased four homes in Las Vegas and Los Angeles with a combined value exceeding $6 million. Additional spending included about $3 million on designer clothing, watches, jewelry and home furnishings from retailers like Louboutin, Neiman Marcus, Gucci and Rolex. At least $800,000 in cash plus an additional 100 bitcoin—worth approximately $3.3 million—were transferred to one of his family members.
The FBI Washington Field Office and IRS Criminal Investigation Washington D.C. Field Office conducted the investigation into PGI’s activities.
Assistant U.S. Attorneys Jack Morgan and Annie Zanobini prosecuted the case along with former Assistant U.S. Attorney Zoe Bedell.
Victims may be eligible for restitution payments; details on submitting claims are available online through official channels.
