According to the claim filed by the SEC to the court of the Eastern District of Virginia, the PGI Global positioned itself as a company selling foreign currencies and cryptoactures. From January 2020 to October of 2021, Palafox sold “membership packages”, which, as he promised, had to bring investors high profits. Participants were offered a reward for attracting referrals – the organization worked on the principle of multi -level marketing.
In total, the PGI Global attracted $ 198 million from investors. The regulator claims that instead of trading cryptocurrencies, Palafox was wasted by more than $ 57 million raised funds for the purchase of cars, real estate, brand hours and personal expenses. SEC demanded the court to impose a constant ban on the activities of PGI Global and Palafox, assign an administrative fine and oblige the offender to return the illegally received money.
“Palafox lured investors with innovative products, but left his victims with nothing, gaining his own pockets by millions of dollars. His false statements about great experience in the crypto industry and a platform for automatic trading based on artificial intelligence turned out to be only a disguise of fraud with securities, ”said SEC.
Last year, the American financial regulator accused GEOSYN MINING of deceiving investors at $ 5.6 million and embezzlement of funds. In January, the SEC accused Nova Labs of an offer of unregistered securities and providing false information to crypto investors.
Source: Bits
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