The SEC has sued PGI World’s Ramil Enterprise Palafox and a number of other aid defendant accomplices.
Ramil Ventura Palafox is the only real named defendant. The SEC has additionally sued 4 aid defendants;
BBMR Threshold LLC – Nevada shell firm used to launder PGI World investor funds, registered to Bryce Palafox (RV’s son) and Rubi Esteves, aka Rubi Palafox-Esteves (proper)- Darvie Mendoza – RV Palafox’s brother-in-law
- Marissa Mendoza Palafox – RV Palafox’s spouse
- Linda Ventura – RV Palafox’s mom
As reviewed by BehindMLM in July 2020, PGI World overview was an MLM crypto Ponzi.
As alleged by the SEC in its Criticism, PGI World was a $198 million Ponzi scheme;
From in or about January 2020 by means of in or about October 2021 (the “Related Interval”), RV Palafox orchestrated a global securities fraud scheme to misappropriate tens of millions of {dollars} of investor funds he obtained by means of Praetorian Group Worldwide Company (“PGI World”), a now-defunct entity he managed.
RV Palafox secured over $198 million in Bitcoin (BTC) and fiat forex investments for PGI World in the course of the Related Interval. He obtained these funds from victims who bought PGI World membership packages based mostly on false guarantees that their investments would assure them giant low-risk returns from Foreign exchange and crypto asset buying and selling.
Naturally there was no worthwhile buying and selling. As a substitute, Palafox and his PGI World accomplices stole investor funds.
RV Palafox misappropriated over $57 million of the funds he obtained by means of PGI World’s unregistered securities choices. Relatively than commerce with these funds as promised, he used investor cash to complement himself and varied insiders together with members of his household and sure different PGI World associates—buying, amongst different issues, actual property, Lamborghinis, and objects from retailers together with Cartier, Versace, and Louis Vuitton.
RV Palafox additionally transferred funds, property, automobiles, and different objects bought with PGI World investor funds to the Reduction Defendants.
What Palafox and his accomplices didn’t steal, was used to additional PGI World as a Ponzi scheme.
RV Palafox in the meantime used the overwhelming majority of the remaining PGI World investor funds to pay sure different traders—funds that ostensibly represented earnings and different rewards these traders had earned from PGI World’s buying and selling operations.
Actually, this cash represented funds circulated from new traders to previous traders.
PGI World collapsed in March 2021. Palafox tried to reboot PGI World, hiding behind promoter Helen L Graham…
…nevertheless that solely lasted until October 2021.
As alleged by the SEC, each iterations of PGI World have been Ponzi schemes rooted in securities fraud.
All through the Related Interval, RV Palafox and promoters working at his course represented to traders that PGI World was profitably buying and selling BTC and incomes its traders monumental returns.
Actually, RV Palafox didn’t have the experience within the crypto asset trade he and PGI World claimed he had.
PGI World by no means had an “Auto Buying and selling” platform and was conducting little to no buying and selling of any sort on traders’ behalf.
PGI World was not licensed to deal in or commerce securities or crypto property within the Philippines, nor was it licensed to commerce crypto property in Estonia at any level in the course of the Related Interval.
Palafox introduced traders with purported proof of buying and selling in advertising movies and the PGI World backoffice.
The SEC claims offered figures have been baloney.
The purported earnings RV Palafox and PGI World claimed have been fictitious.
As to what was really occurring, the SEC offers some examples;
Between in or about July 2020 and in or about October 2020, for instance, RV Palafox transferred over 364 BTC out of PGI World-controlled crypto asset addresses to this third-party cash service enterprise and transformed these investor deposits to roughly $3.8 million in money.
RV Palafox used this money for his personal profit.
On or about September 22, 2020, for instance, RV Palafox transferred PGI World traders’ BTC deposits from a PGI World crypto asset tackle to the third-party cash service enterprise referenced above in alternate for $300,000 in money.
The identical day, RV Palafox bought a Lamborghini in Las Vegas, Nevada, for about $300,000 in money.
RV Palafox and Marissa Palafox bought actual property and varied different issues of worth with PGI World investor funds in the course of the Related Interval.
For instance, RV Palafox bought his private residence in the course of the Related Interval with roughly $1.7 million of PGI World investor funds.
Enter the BBMR Threshold shell firm.
In or about June 2021, for instance, Affiliate 1 wrote to RV Palafox that they “should ensure you are usually not in any method implicated with the corporate as a result of all the corporate [assets] associated to you can be frozen.”
RV Palafox responded: “All the homes and vehicles has [sic] to be switch [sic] to the TRUSTS.”
RV Palafox directed Affiliate 1 and Affiliate 2 to create BBMR for the aim of holding property bought with misappropriated investor funds, and/or funds derived from the sale of property that had been bought with misappropriated investor funds.
“Affiliate 1” and “Affiliate 2” consult with Bryce Palafox and Rubi Esteves (unsure which is which).
RV Palafox subsequently transferred or directed the switch of property bought with PGI World investor funds, or of money derived from the sale of property bought with PGI World investor funds, to BBMR by means of and past the top of the Related Interval.
RV Palafox transferred or directed the switch of sure property to BBMR in anticipation of PGI World’s collapse as, opposite to his representations to traders, he knew PGI World didn’t have the funds to repay traders.
RV Palafox subsequently conveyed this residence to BBMR on or about August 23, 2021.
RV Palafox additionally transferred tons of of hundreds of {dollars} to BBMR in funds derived from the sale of property bought with PGI World investor funds
In complete, BBMR obtained roughly $777,000 in money derived from the sale of property bought with PGI World investor funds.
RV Palafox additionally conveyed or directed the conveyance to BBMR of actual property bought for his profit with over $4.9 million in PGI World investor funds.
Some PGI World investor funds have been laundered immediately by means of Palafox’s family members.
Darvie Mendoza is RV Palafox’s brother-in-law. He obtained $22,500 in gross wage funds from PGI World between April and August of 2021.
Nevertheless, Darvie Mendoza additionally obtained funds derived from PGI World investor funds unrelated to any work or providers he carried out for PGI World, together with a $320,212 mortgage fee approved by RV Palafox. Darvie Mendoza had no official declare to the $320,212 mortgage fee he obtained.
Reduction Defendant Linda Ventura—who’s RV Palafox’s mom—however obtained money and items derived from PGI World investor funds together with a mortgage fee of roughly $169,252 and a Vary Rover car. Linda Ventura had no official declare to this money or these items.
Reduction Defendant Marissa Mendoza Palafox—who’s RV Palafox’s spouse—additionally benefitted from PGI World investor funds.
Amongst different issues, Marissa Mendoza Palafox obtained objects paid for with PGI World investor funds together with over $1.18 million in Cartier jewellery and
purchases at luxurious retailers together with Nordstrom, Neiman-Marcus, Tiffany & Co., Louis Vuitton,
Christian Dior, Chanel and Hermes totaling roughly $88,000.Marissa Mendoza Palafox had no official declare to those objects paid for with PGI World investor funds.
All up, RV Palafox “misappropriated roughly $57 million of PGI World investor funds.”
RV Palafox’s unauthorized makes use of of those funds included shopping for actual property price tens of millions of {dollars} together with varied different high-value purchases.
For instance, by the top of the Related Interval, RV Palafox had spent over $340,000 of PGI World investor funds on watches, and roughly $3.4 million on vehicles.
As a named Defendant, the SEC has sued RV Palafox for a number of violations of the Securities Alternate Act.
The PGI World Reduction Defendants have been sued for unjust enrichment.
The SEC is looking for an injunction towards the PGI World defendants, in addition to disgorgement and civil financial penalties.
The SEC’s Criticism was filed on April twenty second, 2025. Summons for the defendants have been issued on April twenty third.
Individually, the DOJ has filed PGI World legal costs towards RV Palafox. Palafox was arrested in California earlier this month.
Keep tuned for updates as BehindMLM continues to trace each the civil and legal PGI World fraud circumstances.